During the Last Year Alpha Co Had Net Income of $150

question 42

Multiple Choice

During the last year Alpha Co had Net Income of $150, paid $20 in dividends, and sold new stock for $40. Beginning equity for the year was $700. Ending Equity was:

• A)$830.
• B)$840.
• C)$850.
• D)$870.

---

Definitions:

High-low Method

A method in cost accounting that identifies the fixed and variable elements of a cost by examining the lowest and highest levels of activity.

Inspection Cost

The expenses involved in ensuring products or services meet a company's standards of quality, including the costs of labor and equipment used in the inspection process.

Least-squares Regression

A statistical method used to determine the line of best fit by minimizing the squared differences between observed values and those predicted by a linear function.

Mixed Cost

Expenses that have both fixed and variable components, varying with the level of activity but not in direct proportion.