Technician a Says the Discard Dimension of a Brake Drum

question 14

Multiple Choice

Technician A says the discard dimension of a brake drum is the drum's allowable machining dimension. Technician B says a drum may be machined and used if within 10 percent of the discard dimension. Who is correct?

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

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Definitions:

Long-Term Debt Rate

The interest rate applied to loans or borrowings with a maturity date extending beyond one year.

Minimum Operating Lease Payments

The minimum amount that a lessee is obligated to pay over the lease term for the right to use an underlying asset, excluding costs such as maintenance and taxes that are paid by the lessee.

Sales-Type Lease

A lease agreement in which the lessor recognizes immediate profit on the leased asset, as if it were sold, typically used in capital leasing.

Operating Lease

A contract allowing the use of an asset without transferring ownership rights, typically with shorter terms than a finance lease.