The Following Data Pertains to Activity and Utility Costs for Two

question 82

Multiple Choice

The following data pertains to activity and utility costs for two recent years: Using the high-low method,the cost formula for utilities is?

• A) $1.50 per unit.
• B) $8,000 plus $0.50 per unit.
• C) $1.25 per unit.
• D) $6,000 plus $0.75 per unit.

---

Definitions:

Particular Organizational Design

A unique configuration of an organization's structures, processes, and systems designed to achieve its goals and address specific challenges.

Professional Bureaucracy

An organizational structure that relies heavily on the expertise and professionalism of its members rather than on strict hierarchies or rules.

Horizontal Specialization

A division of labor where tasks are divided among employees at the same level within an organization, based on skills or expertise.

Mechanistic Structure

A mechanistic structure in an organization is characterized by rigid hierarchy, high levels of formalization, and centralized decision making.