Figure 3-13

question 86

Multiple Choice

Figure 3-13.The following 6 months of data were collected on electricity cost and the number of machine hours in a factory.
-Refer to Figure 3-13. An independent variable value used in calculating the cost line using the high-low method is:

• A) $27,950
• B) 5,430
• C) $25,160
• D) 4,000

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Definitions:

FIFO

"First In, First Out," a method used in inventory management and accounting where the oldest inventory items are sold or used first.

Net Income

Signifies the net income of a corporation following the subtraction of all costs and tax obligations from the overall revenue.

Inventory Turnover

A measure showing the frequency at which a company's inventory is sold and replenished within a given timeframe.

Days in Inventory

A financial metric that calculates the average number of days a company holds inventory before it is sold.