Which of the Following Statements About Maintenance at Orlando Utilities

question 40

Multiple Choice

Which of the following statements about maintenance at Orlando Utilities Commission is false?

• A) There are at least two types of preventive maintenance, including an annual maintenance and a less frequent overhaul schedule.
• B) Its preventive maintenance program has earned the company top rankings and its competitive advantage.
• C) Each power-generating unit is taken off-line every three years for a complete overhaul.
• D) Each of its power-generating units is taken off-line for maintenance every one to three weeks.
• E) Costs associated with breakdowns are several times higher than costs arising from preventive maintenance.

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Definitions:

Operating Expenses

Costs associated with the day-to-day operations of a business, such as rent, utilities, and salaries, excluding direct production costs.

Revenues

The sum of revenue obtained through the sales of products or services that are central to a company's main activities.

Multiple-Step

An income statement format that separates operating revenues and expenses from nonoperating revenues, expenses, and gains and losses.

Single-Step

An income statement format that consolidates all revenues and gains together and all expenses and losses together, resulting in a single step to determine net income.