The Table Below Shows Hypothetical Monthly Cell Phone Plan Fees

question 88

Multiple Choice

The table below shows hypothetical monthly cell phone plan fees for the identical service over several years. TABLE 2-2 Refer to Table 2-2.Assume that 2015 is used as the base year,with the index number = 100.The value of the index number in 2017 is

• A)100.
• B)0.72.
• C)72.73.
• D)1.375.
• E)137.5.

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Definitions:

Fixed Maintenance

Scheduled or routine maintenance activities that incur costs regardless of the operational status of equipment.

Relevant Range

The range of activity within which the assumptions about variable and fixed cost behaviors hold true.

Variable Cost

Costs that change in proportion to the level of output or activity in a business operation.

Total Variable Cost

The total of all costs that vary with changes in the production level or sales volume, such as raw materials, direct labor, and variable overhead.