If a Principal Directs the Agent to Commit a Tort

question 1

True/False

If a principal directs the agent to commit a tort or knows for a fact that the agent carrying out his instructions could cause someone harm, then the principal is liable.

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Definitions:

Process Inventory

The amount of inventory that is currently undergoing manufacturing or production processes.

Conversion Costs

The total cost of converting raw materials into finished goods, including both labor and manufacturing overhead expenses.

Weighted-Average Method

A cost accounting method that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale.

Molding Department

A specific section in a manufacturing facility where molding processes, such as injection or compression molding, are performed to shape materials.