The List of Accounts Presented Below Are from the Accounting

question 73

Essay

The list of accounts presented below are from the accounting records of Grammerle, Inc. on September 30, 2011. Assume that each account balance is normal, and present them in proper trial balance format.

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Definitions:

High-low Method

A technique used in managerial accounting to estimate variable and fixed cost components of a cost by analyzing the highest and lowest activity levels.

Electrical Cost

Electrical cost refers to the expenses incurred from the use of electricity, often a significant component of utility costs for homes and businesses.

Machine-hour

A measure of the amount of time a machine is run, often used as a basis for allocating manufacturing overhead to products.

High-low Method

A technique used in cost accounting to estimate fixed and variable costs associated with production by using the highest and lowest levels of activity.