This Question: 2 pts 21 of 55 (0 complete) ? | > | This Test: 150 pts pos Which of the following statements is true of process costing? O A. It assigns manufacturing overhead costs to products only in the last production process. O B. It tracks and assigns both period costs and product costs to units produced. O C. It accumulates product costs by production departments. O D. It uses one Work-in-Process Inventory account. Solution Process costing accumulates product costs by production departments. Option C is correct.

1. Thomas Rinks and Joseph Shields developed Psycho Chihuahua, a caricature of a Chihuahua dog
with a “donotbackdown” attitude. They promoted and marketed the character through their
company, Wrench, L.L.C., a Michigan company. Ed Alfaro and Rudy Pollak, representatives of
Taco Bell Corp., a California company, learned of Psycho Chihuahua and met with Rinks and
Shields to talk about using the character as a Taco Bell “icon.” Wrench sent artwork,
merchandise, and marketing ideas to Alfaro, who promoted the character within Taco Bell.
Alfaro asked Wrench to propose terms for Taco Bell's use of Psycho Chihuahua. Taco Bell did
not accept Wrench’s terms, but Alfaro continued to promote the character within the company.
Meanwhile, Taco Bell hired a new advertis-ing agency, which proposed an advertising campaign
involving a Chihuahua. When Alfaro learned of this proposal, he sent the Psycho Chihuahua
materials to the agency. Taco Bell made a Chihuahua the focus of its marketing but paid nothing
to Wrench. Wrench filed a suit claiming in part that it had an implied contract with Taco Bell,
which the latter breached.
Answer the following
Which court(s) have jurisdiction to hear Wrench's lawsuit?
Solution
The court having jurisdiction to hear Wrench's lawsuit is Federal court as Psycho Chihuahua
character is a creation of Wrench and is used by Taco Bellw without purchasing any rights or
entering into a contract after getting all the details on artwork, merchandise and marketing ideas
regarding the character.