Technician a Says That Worn Valve Guides Can Cause Excess

question 12

Multiple Choice

Technician A says that worn valve guides can cause excess oil consumption. Technician B says that valve guides can be measured with a dial bore gauge. Who is correct?

• A) A only
• B) B only
• C) Both A and B
• D) Neither A nor B

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Definitions:

Variable Selling Expense

Costs that vary directly with the volume of sales, such as commissions, shipping charges, and promotional expenses.

Cost of Goods Sold

The financial outlays directly associated with the production of a company's sold merchandise.

Variable Administrative Expense

Expenses that vary in direct proportion to changes in an organization's activity level, such as sales commissions.

Traditional Format Income Statement

A financial statement that shows a company's revenues, expenses, and profits, typically starting with sales and subtracting cost of goods sold and other expenses.