In order to effectively defend his/her expert report on damages during trial cross examination, the accounting expert will need to:

a. Defend his/her assumptions on the severity of the work-related injury sustained by Jennifer.

b. Be able to explain away the company's personnel reports about the employee's missed work because of back problems.

c. Offer examples from other injury-related cases that parallel the current injury case and support the expert's opinion in the current case.

d. Explain the basis of the opinions in this expert report and be ready to answer any questions about the impact of differing views of the severity of Jennifer's injuries on the calculation of damages. (Points : 5)

15.

Plaintiff GG Company convinced the court that JJ Company had engaged in antitrust actions that had caused GG serious financial damages. As part of GG's expert's damage testimony, it was shown that, during the 18-month time period covered by the case, GG Company's sales had fallen from an average of $400,000 per month to $300,000 per month. In addition, GG Company's profits had gone from an average of $40,000 per month to an average of a loss of $20,000 per month. Given this information, what is GG Company's damages in the case?

a. $1,080,000. b. $1,800,000. c. $720,000. d. $360,000. e. None of the above. (Points : 5) a b c d e

11.

Petoskey Supply Company makes specialized products for automobile applications. Recently management introduced a new patented engine sensor device. The first year costs and revenues for the product were as follows:

Selling price...................................................................................................	$400 per unit
Direct materials..............................................................................................	$125 per unit
Direct labor....................................................................................................	$ 45 per unit
Variable MOH...............................................................................................	$ 40 per unit
Total fixed MOH...........................................................................................	$1,600,000
Variable selling and administrative...............................................................	$ 30 per unit
Total fixed selling and administrative...........................................................	$500,000
Sales volume..................................................................................................	25,000 units

During the second year of production and sales, the company only sold 12,000 units of product, because a competitor produced and sold an identical product. Petoskey Supply has filed a law suit against the competitor for patent infringement. Assume the competitor is liable as alleged by Petoskey Supply in the patent infringement law suit. What is the amount of damages that Petoskey Supply experienced during the second year of the new product as a result of the competitor's patent infringement?

a. $110,000 b. $2,535,000 c. $2,650,000 d. $2,080,000

(Points : 5) a b c d

19.

A primary difference in the calculation of economic damages between a job-related disability case and a wrongful death case is that:

a. The value of lost household services would never be a part of the economic damages in a wrongful death suit but they typically would be part of the damages in a disability case.

b. In a wrongful death suit, there are usually criminal charges that must be considered.

c. There are no differences between damage calculations in these two types of cases.

d. In a wrongful death case, there is no need to determine the extent of the disability in computing wage related damages or the value of lost household services, but such an assessment is necessary in a disability case. (Points : 5) a b c d

18.

Doctors and occupational therapists are often called upon in determining the degree of injury or disability in a personal injury case. In such instances, the financial expert witness should:

a. Use the information provided in consultation with the attorney to arrive at the most accurate damage estimate possible.

b. Make his or her own assessment of the degree of injury because the financial expert's reputation is at stake in rendering an opinion in the case.

c. Prepare a wide range of possible damage estimates to take into account the many different views of the extent of the injuries to the victim.

d. Ignore any information on the extent of the victim's injuries and just stick to the financial issues in the case.

(Points : 5) a b c d