Using the High-Low Method to Estimate Cost Behavior,420 Maintenance Hours

question 46

Multiple Choice

Using the high-low method to estimate cost behavior,420 maintenance hours in a month would mean the maintenance costs would be budgeted at

• A)$3,150.
• B)$3,600.
• C)$3,720.
• D)$3,780.
• E)$3,461.

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Definitions:

Decentralization

The distribution of power across all levels of the organization.

Downsizing

The process of reducing the number of employees in an organization, often to cut costs or improve efficiency.

Effectiveness

The degree to which something is successful in producing a desired result, measured by the achievement of goals.

Adaptability

describes the capacity to adjust to new conditions, challenges, or environments, often necessary for personal growth or organizational survival.