At an Activity Level of 6,000 Units the Cost for Maintenance

question 113

Multiple Choice

At an activity level of 6,000 units the cost for maintenance is $7,200 and at 10,000 units the cost for maintenance is $11,600.Using the high-low method,the cost formula for maintenance is?

• A) $1.16 per unit.
• B) $1.20 per unit.
• C) $600 plus $1.10 per unit.
• D) $1,200 plus $1.10 per unit.

Understand the basics of the perpetual and periodic inventory systems, including their journal entries.

Calculate inventory balances using different costing methods such as LIFO, FIFO, and average cost under both perpetual and periodic systems.

Identify the appropriate inventory costing method for various types of businesses.

Calculate cost of goods sold (COGS) using different costing methods.

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Definitions:

Nonparametric Test

A type of statistical test that does not assume a particular distribution for the data, often used when data do not meet the assumptions of parametric tests.

Independent Samples

Two or more groups of data that are collected from different populations or treatment conditions, with no overlapping members between groups.

Parametric One-way Analysis

A statistical technique used for comparing means of three or more samples, assuming a normal distribution.

Kruskal-Wallis Test

A non-parametric method for testing whether samples originate from the same distribution, used as an alternative to the one-way ANOVA when the distribution assumption is violated.