Bayshore, Inc

question 101

Essay

Bayshore, Inc., has collected the following cost data for various levels of activity: Using the high-low method, determine the variable cost per client served and the total fixed cost.

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Definitions:

Direct Expense

Costs that can be directly attributed to the production of goods or provision of services, such as materials and labor.

Wages

Payments made to employees for their labor or services, typically on an hourly, daily, or per-task basis.

Manager

An individual responsible for directing and overseeing the work of a group of people in an organization.

Utilities

Services such as water, electricity, gas, and sewer services provided to consumers and businesses.