Question
30 . Knowledge about the behavior of different costs in a service department such as maintenance can be used to ________. A) plan costs B)
30. Knowledge about the behavior of different costs in a service department such as maintenance can be used to ________.
A) plan costs
B) provide feedback to managers
C) make decisions about the most efficient use of resources
D) all of the above
31. In an economic downturn, a company could temporarily reduce or eliminate a(n) ________.
A) salaries of key personnel
B) lease payment
C) employee training program
D) insurance on corporate offices
32. Sorowskis Motel's cost function is given as:
Y = $80,000 + $7.40X
Where:
Y = annual custodial cost
X = number of guest-days of occupancy
In the current year, Sorowskis Motel has 6,000 guest days. In the next year, Sunrise Motel expects an occupancy level of 6,500 guest days. (All costs next year will remain in the same relevant range as the current year.) What is the expected fixed custodial cost for next year?
A) $7.40
B) $60,000
C) $80,000
D) $75,000
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