Each of Acorn Manufacturing's Production Managers Can Oversee 80,000 Machine

question 10

Multiple Choice

Each of Acorn Manufacturing's production managers can oversee 80,000 machine hours of manufacturing activity. The annual salary of a production manager is $55,000. If Acorn has 60,000 hours of manufacturing activity, one manager is needed; for 100,000 hours, two managers are needed; for 150,000 hours, three managers are needed; and so forth. Acorn's salary cost can best be described as a:

• A)variable cost.
• B)curvilinear cost.
• C)step-variable cost.
• D)fixed cost.
• E)step-fixed cost.

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Definitions:

Innocent Misrepresentation

A misrepresentation made without fault or knowledge of its falsity, which may allow the misled party to void the contract but not claim damages.

Intentionally Deceptive

Deliberately misleading actions or statements designed to make someone believe something that is not true.

Ratification

The action of officially approving or confirming a previous act or decision, which was made without authorization or was otherwise questionable, to make it legally valid.

Voidable Contract

A contract that remains valid until one party, who is entitled to do so because of a defect in the contract formation, chooses to void it.