A Vehicle Is Towed into the Shop with a Thrown

question 12

Multiple Choice

A vehicle is towed into the shop with a thrown serpentine belt. Technician A checks for a worn pulley bearing. Technician B checks for a faulty tensioner. Who is correct?

• A)A only
• B)B only
• C)both A and B
• D)neither A nor B

Distinguish between current and long-term assets and liabilities.

Understand the basics of working capital management and its significance in financial management.

Identify various sources of short-term financing and understand their uses and costs.

Identify and classify types of assets and liabilities in a business context.

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Definitions:

Variable Costing

A costing method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed manufacturing overhead.

Operating Income

Earnings generated from a company's standard business operations, excluding income from investments and other non-operational sources.

Absorption Costing

A bookkeeping approach that encompasses all production expenses, including direct materials, direct labor, and all overhead costs, both variable and fixed, in the price of a product.

Operating Income

The profit realized from a business's operations after subtracting operating expenses like wages, depreciation, and cost of goods sold.