You Are Driving on a Long Highway to Go on Vacation

question 145

Multiple Choice

You are driving on a long highway to go on vacation during spring break and you plan to average 65 miles per hour. The distance you travel can be calculated by the equation where D is distance in miles and t is hours you drive. How far will you drive if you drive for 9 hours?

• A) 600 miles
• B) 585 miles
• C) 560 miles
• D) 1000 miles

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Definitions:

Variable Costing

A costing method in accounting that only considers variable costs, which change with the level of output, in the determination of the cost of goods sold or manufacturing costs.

Fixed Production Cost

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

Ending Inventory

The total value of all unsold goods at the end of an accounting period, including raw materials, work-in-progress, and finished goods.

Beginning Inventory

The value of a company's inventory at the start of an accounting period, before any purchases or sales have been made.