To Control Production Costs in the Face of Huge Intraday

question 46

Multiple Choice

To control production costs in the face of huge intraday fluctuations in electricity demand, electricity companies often

• A)operate all plants at full capacity.
• B)operate all plants at less than full capacity.
• C)produce at several plants with different operating costs.
• D)produce at one plant with the lowest possible operating cost.

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Definitions:

General Journal

The primary accounting record used to record all types of transactions not assigned to other journals.

Equipment

Tangible property that is used in the operations of a business and has a useful life of more than one year.

Salaries

Payments made to employees for services rendered, typically on a monthly or biweekly basis, constituting an operating expense for companies.

General Journal

A fundamental accounting record where all transactions are initially recorded using debits and credits, before being transferred to specific accounts in the ledger.