Laura and Tim McNash Recently Moved to North Carolina on a Three-Acre

question 37

Multiple Choice

Laura and Tim McNash recently moved to North Carolina on a three-acre home site. They purposefully purchased their home within biking distance to the university where they are both employed, and their bikes each have room for two cloth bags for groceries if they need to purchase food on the way home, although they plan to grow much of their own. Laura and Tim are examples of a growing number of young people whom:

• A) have developed a health conscious attitude.
• B) want to change their lifestyle to be more in tune to saving energy.
• C) dislike urban centers and wish to live in the country.
• D) stay away from urban areas due to increased threats of terrorist attacks in those localities.

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Definitions:

Activity Variance

The difference between budgeted activity levels and actual activity levels.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Variable Costs

Expenditures that are directly linked to the production or sales volume, including direct labor and raw materials.

Refurbishing Materials

Materials used in the process of cleaning, repairing, and updating an item to bring it back to a like-new condition, often in electronics and furniture.