Suppose That for a Particular Piece of Machinery, the Frequency

question 94

Multiple Choice

Suppose that for a particular piece of machinery, the frequency distribution of monthly breakdowns is as follows:

The cost of a breakdown is $2,000, and the cost of a preventive maintenance program is $2,000 per month. If the preventive maintenance program is adopted, the probability of a machine breakdown is negligible. How much better off per month would the firm be if it adopted preventive maintenance?

• A)$100 worse off
• B)$200 worse off
• C)$100 better off
• D)$200 better off
• E)$2,000 better off

Grasp how responsibility accounting impacts the control and management of business operations.

Comprehend the principles and methods for allocating operating expenses and service department charges.

Recognize the difference between direct and indirect expenses for department stores.

Understand the various performance measures for investment centers, including income from operations, ROI, and residual income.

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Definitions:

Antipodal Nuclei

Cells located at the opposite end of the embryo sac in flowering plants, often playing a role in nourishment and development of the embryo but undergoing degeneration in many species.

Imbibition

The absorption of water by plant tissues, particularly seeds, leading to swelling and the initiation of germination.

Oxygen

A chemical element with symbol O and atomic number 8, essential for most forms of life on Earth, involved in breathing and combustion processes.

Generative Cell

In plant biology, a cell within the pollen grain that divides to form two sperm cells during the process of fertilization.