Sterling Glass Company Uses the High-Low Method to Analyze Mixed

question 68

Multiple Choice

Sterling Glass Company uses the high-low method to analyze mixed costs. The following information relates to the production data for the first six months of the year.What is the estimated total cost at an operating level of 900 hours?

• A) $5,275.
• B) $5,745.
• C) $5,115.
• D) $5,885.

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Definitions:

Voting Power

Refers to the rights of shareholders to vote on corporate matters, typically exercised during annual general meetings and special resolutions.

Investments In Associates

Investments where the investor has significant influence (typically 20-50% ownership) over the investee but does not control it.

Measured At Cost

An accounting principle where an asset is recorded on the balance sheet based on its original purchase price, including all costs necessary to get it ready for its intended use.

Consolidated Financial Statements

Financial statements of a group in which the assets, liabilities, equity, income, expenses, and cash flows of the parent company and its subsidiaries are presented as those of a single economic entity.