If We Do Not Change Our Current Rates of Coal

question 43

Multiple Choice

If we do not change our current rates of coal usage, how long would the proven coal reserves last?

• A) 10 years
• B) 20 years
• C) 120 years
• D) 1,200 years
• E) none of these answers

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Definitions:

Units

The individual elements or items produced or available in some quantity.

Variable Cost

Costs that change in proportion to the level of production or sales activity, such as raw material and labor costs.

Fixed Cost

Expenses that do not vary with the level of production or sales activity, such as rent, salaries, and insurance premiums.

Period Cost

Costs that are expensed in the period in which they are incurred, typically including selling and administrative expenses, rather than being included in the cost of goods sold.