If Each Motorcycle Requires a Belt That Costs $20 and 2,000

question 14

Multiple Choice

If each motorcycle requires a belt that costs $20 and 2,000 motorcycles are produced for the month, the total cost for belts is ________.

• A) considered to be a direct fixed cost
• B) considered to be a direct variable cost
• C) considered to be an indirect fixed cost
• D) considered to be an indirect variable cost

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Definitions:

Software Errors

Mistakes or faults in a computer program that cause it to produce incorrect or unexpected results or to behave in unintended ways.

Sonar Equipment

Equipment that uses sound propagation (usually underwater) to navigate, communicate, or detect objects on or under the surface of the water.

Prevention Cost

Costs incurred to prevent defects in products or services, part of quality control measures.

Quality Training

The process of instructing employees on the standards and procedures necessary to ensure that products or services meet quality expectations.