While Discussing Potential Ways to Increase Power Output from an Engine

question 12

Multiple Choice

While discussing potential ways to increase power output from an engine, Technician A says that advancing injection timing a few degrees will increase power output. Technician B says that advancing injection timing a few degrees will reduce fuel consumption. Who is correct?

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

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Definitions:

Discretionary Fixed Costs

Those fixed costs that arise from annual decisions by management to spend on certain fixed cost items, such as advertising and research.

Committed Fixed Costs

Expenses that a company has to pay regardless of its level of production or sales, such as leases and long-term contracts, which cannot be easily changed in the short term.

Unit Fixed Cost

The fixed cost associated with producing one unit of a product, which does not vary with the level of production output.

Total Fixed Cost

The sum of all expenses that remain constant regardless of the level of production or sales activities, such as rent, salaries, and insurance premiums.