You Have Been Considering Using the Available Mass Transit to Get

question 49

Multiple Choice

You have been considering using the available mass transit to get to work.A bus ticket to travel the 10 miles from your home to your place of employment costs $2.You have calculated the cost of ownership of and the cost of operations for the auto you are presently using to commute.These are,respectively,45 cents per mile and 13 cents per mile.Accordingly,if you are interested in reducing your current expenses,you should consider

• A)using mass transit,only if the auto is not needed for other purposes than commuting.
• B)using mass transit under all circumstances,because the total cost of ownership and operations exceeds the cost of using mass transit.
• C)using mass transit under all circumstances,because the cost of ownership exceeds the cost of using mass transit.
• D)using mass transit under all circumstances,because the cost of operations exceeds the cost of using mass transit.

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Definitions:

First-In-First-Out (FIFO)

An inventory valuation method where the first items produced or acquired are the first to be sold or used, reflecting the chronological flow of goods.

Weighted-Average Method

An inventory costing method that assigns a weighted average cost to each unit in inventory, used in both periodic and perpetual inventory systems.

Cost Control

The practice of managing and reducing business expenses through efficient operations and spending.

Weighted-Average Method

Inventory costing method that calculates the cost of goods sold and ending inventory based on the weighted average cost of all materials purchased during a period.