The Following Information Was Taken from a Computer Printout Generated

question 38

Multiple Choice

The following information was taken from a computer printout generated with the least-squares method for use in estimating overhead costs: $$\begin{array} { l l } \text { Slope } & 45 \\\text { Intercept } & 5,700 \\\text { Correlation coefficient } & .72 \\\text { Activity variable } & \text { Direct 1abor hours }\end{array}$$ The cost formula is

• A)Overhead = $5,700 − $45X
• B)Overhead = $5,700 + $45X
• C)Overhead = $5,700 + ($45 × 0.72)
• D)Overhead = $5,700 × 0.72

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Definitions:

Management Powers

Refers to the authority vested in managers or executives to make decisions, enforce policies, and oversee the operations and administrative functions of an organization.

Apparent Authority

A form of authority that an agent appears to have based on the principal's actions, leading third parties to reasonably believe the agent has the authority to act.

Negotiable Instruments

Written contracts (like checks, promissory notes, and bills of exchange) that guarantee the payment of a specific amount of money, either on demand or at a set time.

Actual Authority

The explicit power given to an agent by a principal, allowing the agent to act on the principal's behalf.