PSE&G Is a Utility Company

question 29

Multiple Choice

PSE&G is a utility company.One of its service guarantees is to keep all appointments.If PSE&G fails to keep an appointment mutually agreed upon by the customer and the company,PSE&G will credit residential customers' accounts by $25 and business customers' accounts by $100.The guarantee only applies to appointments for meter readings,account investigation,gas service,gas appliance repair and both electric and gas meter work scheduled three days in advance.Which of the following statements about PSE&G's service guarantee is FALSE?

• A) PSE&G's guarantee is easy to understand and communicate
• B) PSE&G's guarantee is unconditional
• C) PSE&G's guarantee is meaningful
• D) PSE&G's guarantee is easy to invoke
• E) PSE&G's guarantee is qualitative

Understand the concept of fixed and variable overheads and their impact on cost control.

Analyze and explain the causes and impacts of overhead variances.

Identify the components and purposes of an overhead cost performance report.

Determine the appropriate input measures for preparing a flexible overhead budget.

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Definitions:

Consumption Demand

The desire and ability of consumers to purchase goods and services in an economy, determining the overall level of consumption.

Automatic Stabilizers

Programs and policies in economics formulated to counter changes in a nation's economic status, without the need for more intervention from governmental bodies or policymakers.

Business Cycle

A recurring sequence of economic expansion and contraction phases experienced by a country's economy.

Public Debt

The total amount of money owed by the government to creditors, which can include domestic or foreign individuals, corporations, or other governments.