Oaklis Company Has Provided the Following Data for Maintenance Cost

question 100

Multiple Choice

Oaklis Company has provided the following data for maintenance cost: Maintenance cost is a mixed cost with variable and fixed components.The fixed and variable components of maintenance cost are closest to:

• A)$24,000 per year;$2.30 per machine hour
• B)$6,000 per year;$1.80 per machine hour
• C)$6,000 per year;$2.30 per machine hour
• D)$24,000 per year;$1.80 per machine hour

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Definitions:

Railroads

Transportation systems comprising tracks, trains, and supporting infrastructure that serve as a method for moving goods and people over long distances.

Postponement

The delay of any modifications or customization to a product as long as possible in the production process.

Accumulation

The process of gradually gathering or increasing amounts of something over time.

Inventory

The stock of goods or materials that a business holds at any given time, including raw materials, work-in-process, and finished goods.