The Fuel Cost, C, for a 3000 Mile Trip Depends

question 22

Multiple Choice

The fuel cost, C, for a 3000 mile trip depends on the price, p, per gallon of gasoline and fuel economy in miles per gallon, m, of the car according to the formula . On the same set of axes, sketch a graph of C as a function of m with fixed gas prices of $2.00, $2.25, $2.50, and $2.75. What do you observe as gas prices increase?

• A)The graphs are all straight lines from the origin with slopes that get progressively less steep.
• B)The graphs are similarly shaped curves that get progressively higher.
• C)The graphs are all straight lines from the origin with slopes that get progressively steeper.
• D)The graphs are similarly shaped curves that get progressively lower.

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Definitions:

Flexible Budget Performance Report

compares actual results to budgeted amounts adjusted for the actual level of output, aiding in the evaluation of financial performance.

Cost Driver

A factor, such as machine-hours, beds occupied, computer time, or flight-hours, that causes overhead costs.

Activity Variances

Differences between planned activities (budgeted) and actual activities in management accounting, used for monitoring performance and guiding decisions.

Flexible Budget

A budget that adjusts or flexes with changes in the volume or activity level, allowing for better budgetary control under different operational circumstances.