Damages That Are Fixed in the Contract for the Amount

question 53

Multiple Choice

Damages that are fixed in the contract for the amount to be awarded in the event of a breach are known as:

• A)Punitive damages.
• B)Liquidated damages.
• C)Consequential damages.
• D)Conditional damages.

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Definitions:

Inventory Value

The total cost or market value of all items held in stock by a business, including raw materials, work-in-progress, and finished goods.

Perpetual FIFO Method

is an inventory valuation technique assuming that the first items purchased (First In) are the first ones sold (First Out), continuously updated for each transaction.

Inventory Flow

The process by which inventory moves through a business, from purchase and storage to sale.

Periodic Inventory System

An inventory accounting system where updates to inventory accounts occur at specific intervals, typically at the end of an accounting period.