Low Initial Costs and Low Maintenance Costs, Low Potential for Storm

question 43

Multiple Choice

Low initial costs and low maintenance costs, low potential for storm damages, and low negative environmental impact are consequences of policies to ________.

• A)prohibit coastal development, build nothing but grass shacks, put a moratorium on insurance, declare victory over the sea, and retreat from the coastline
• B)promote coastal development, build massive, hardened structures to stop all but the most powerful storm waves
• C)allow coastal development, make a long-term commitment to beach nourishment
• D)fly to Tahiti

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Definitions:

Activity Base

A measure or factor used as a basis for allocating costs in managerial accounting, often related to the volume of production activity or the level of service provided.

Service Department Expenses

Costs incurred by support departments within an organization, like HR and maintenance, which do not directly contribute to revenue but are necessary for operations.

Budget Performance Report

A financial report that compares actual financial results to the budgeted amounts for a specific period to assess performance.

Significant Variances

Large or meaningful differences between planned and actual figures in budgeting or accounting, requiring investigation.