Use the Following Information to Answer the Following Questions

question 28

Multiple Choice

Use the following information to answer the following Questions
Seven Falls Cuisines has the following flexible-budget formula:
Y = $13PH + $450,000 where PH is defined as process hours.

-Which of the following statements is (are) true?

• A) Seven Falls has $450,000 of fixed costs.
• B) Each additional hour of process time is expected to cost Seven Falls $13.
• C) Y would equal the amount shown as "total cost" in the company's flexible budget.
• D) Both Seven Falls has $450,000 of fixed costs and each additional hour of process time is expected to cost Seven Falls $13.
• E) All of the answers are correct.

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Definitions:

Processing Information

The act of receiving, interpreting, and responding to information received from the environment or internal cues.

Human Resources

The department within an organization that deals with the recruitment, management, and direction of people who work in it.

Motivation Levels

The degree of desire, willingness, or commitment towards achieving a specific goal or completing a task.

Wages

Payments made to employees for their labor or services, usually calculated on an hourly or daily basis.