Situation Alan Is Somewhat Surprised That He Has Gained a Couple

question 20

Multiple Choice

Situation
Alan is somewhat surprised that he has gained a couple of pounds since coming to college.He has never had a weight problem.He was always active every day in high school sports.Alan admits that his eating habits probably aren't as good as they should be.Still,he eats only three meals a day and a snack at night.He doesn't snack between meals because he doesn't get hungry.The food servers in the cafeteria where he eats always give him generous servings of food.Alan isn't involved with any college sport,but he does play basketball with his friends occasionally.He also has a part-time job and has a full course load.Alan thinks he is more active in college than when he was in high school.In fact,he often feels rushed going to classes because of the distance between classroom buildings and the fact that most of his classes are on the third or fourth floor and he has to wait to get an elevator.
-The most likely cause of Alan's weight gain is

• A)reduced activity level.
• B)poor eating habits.
• C)the inevitable weight gain associated with getting older.
• D)stress related to leaving home.

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Definitions:

Fixed Component

A cost or part of a cost that remains unchanged regardless of changes in the level of output or activity.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders based on a specific activity measure, like labor hours or machine hours.

Machine-Hours

A measure of production activity that quantifies the number of hours machines are operated in the production process.

Fixed Component

A cost that does not change with the level of output or activity over a particular period of time.