Which of the Following Situations Would Be the Most Susceptible

question 60

Multiple Choice

Which of the following situations would be the most susceptible to slope failure?

• A) a large mansion built on top of a gently sloping hill covered with vegetation
• B) a hotel built on a flat surface with a large river flowing next to the hotel
• C) a large resort built on top of a cliff directly above the ocean
• D) a small house built on top of a steep slope in a desert region

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Definitions:

Variable Cost

Expenses that change in proportion with the level of activity or production volume, such as materials costs or sales commissions.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business over a certain period, such as rent, salaries, and loan payments.

High-low Method

A technique in managerial accounting used to estimate variable and fixed costs by analyzing the highest and lowest levels of activity.

Variable Cost Per Unit

The cost that varies with the level of output or activity, calculated on a per-unit basis.