The liability of manufacturers and other sellers of goods for a defective product may be based on all but which of the following?
A) Negligence and misrepresentation
B) Violation of a statutory duty
C) Warranty and criminal liability
D) Strict liability in tort
C
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Which of the following is not described in the chapter as a message variable that contributes to a persuasive effort?
A. arrangement of the information B. using humor C. giving a range of evidence D. stating explicitly what is desired
The cost of production report reports the cost charged to production and the costs allocated to finished goods and work in process
Indicate whether the statement is true or false
Which of the following is the assignment process used with normal costing?
A) Actual direct materials, actual direct labor and actual overhead cost are assigned to products. B) Actual direct materials cost is assigned to products, but direct labor and overhead costs are assigned using predetermined rates. C) Actual direct labor cost is assigned to products, but direct material and overhead costs are assigned using predetermined rates. D) Actual direct material and direct labor costs are assigned to products, but overhead costs are assigned using predetermined rates. E) all manufacturing costs are assigned using predetermined rates
Former NFL coach Joe Gibbs is highly sought after as a guest speaker. His fee can run as high as $150,000 for a single two-hour appearance. Recently, he was asked to speak at a seminar offered by the National Sports in Education Foundation (NSEF). Due to the charitable nature of the organization, Mr. Gibbs offered to speak for $100,000. NSEF planned to invite 350 guests who would each make a $500 contribution to the organization. The Foundation's executive director was concerned about committing so much of the organization's cash to this one event. So instead of the $100,000 fee she countered with an offer to pay Mr. Gibbs 50% of the revenue received from the seminar and no other payments.Required:(a) Classify the two offers in terms of cost behavior (fixed vs. variable).Scenario A, NSEF
pays Gibbs a $100,000 fee:Scenario B, NSEF pays Gibbs 50% of revenue:(b) Compute the budgeted income (assuming there are no other expenses) under each of the following scenarios:1) NSEF agrees to pay the $100,000 fee, and 350 guests actually attend the seminar; and2) NSEF pays Mr. Gibbs 50% of revenue, and 350 guests attend the seminar.(c) For each scenario ($100,000 fee vs. 50% of revenue), compute the percentage increase in profit that would result if the Foundation is able to increase attendance by 20 percent over the original plan (to a total of 420). (Round the percentages to the nearest whole numbers.)(d) For each scenario, compute NSEF's cost per contributor if 350 attend and if 420 contributors attend. (Round the cost per contributor to two decimal points.)(e) Summarize the impact on risk and profits of shifting the cost structure from fixed to variable costs. What will be an ideal response?