Maintenance Expenses of a Company Are to Be Analyzed for Purposes

question 13

Multiple Choice

Maintenance expenses of a company are to be analyzed for purposes of constructing a flexible budget. Examination of past records disclosed the following costs and volume measures: $\begin{array}{lrr} & \text { Highest } & \text { Lowest } \\\text { Cost per month } & \$ 86,000 & \$ 74,000 \\\text { Machine hours } & 96,000 & 66,000\end{array}$ Using the high-low technique, estimate the annual fixed cost for maintenance expenditures:

• A) $447,400.
• B) $368,800.
• C) $532,900.
• D) $571,200.
• E) $218,700.

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Definitions:

Major Traits

Key characteristics or qualities that significantly define a person or concept.

Low-level Managers

Managers who oversee the day-to-day operations and activities of an organization, often directly supervising frontline employees and implementing short-term plans.

Middle-level Managers

Managers who operate between the senior management and the operational levels of an organization, responsible for executing organizational policies and strategies at the departmental level.

Upper-level Managers

Refer to executives and senior managers who are responsible for high-level decision-making and setting the overall direction of an organization.