When a Firm Buys a New Fleet of Trucks,or a New

question 14

Multiple Choice

When a firm buys a new fleet of trucks,or a new state-of-the-art machine,this is likely to increase ________ productivity.

• A) output
• B) capital
• C) labour
• D) materials
• E) motivational

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Definitions:

Variable Lubrication Cost

A variable cost associated with the amount of lubrication needed for machinery in the manufacturing process, which varies with the level of production activity.

Machine Hour

A unit of measure that represents the operation of machinery or equipment for one hour, used in allocating manufacturing overhead.

Least-squares Regression

A statistical method used to determine the relationship between variables by minimizing the sum of the squares of the differences between observed and predicted values.

Variable Lubrication Cost

Costs for lubricants that vary with the level of machinery activity or operation hours.