Figure 3-12

question 22

Multiple Choice

Figure 3-12. The method of least squares was used to develop a cost equation to predict the cost of monthly equipment maintenance.The following computer output was received:
The driver used was the number of machine hours.
Refer to Figure 3-12.Using the cost formula for the equipment maintenance cost,what is the predicted cost of equipment maintenance for April assuming that 5,000 machine hours will be incurred in April?

• A)$32,000
• B)$125,000
• C)$157,000
• D)none of these are correct

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Definitions:

Limited Life

Refers to the finite existence of a tangible or intangible asset or entity, emphasizing its bounded operational or functional period.

Limited Liability

A legal structure that limits the personal liability of the owners and shareholders of a company for the company's debts and actions.

Share Transferability

The ease with which shares of a company can be transferred or sold from one party to another.

Partnership

A legally recognized form of business where more than one individual partakes in managing and profit-sharing.