The Following Data Relate to the Lisle Company for May

question 61

Multiple Choice

The following data relate to the Lisle Company for May and August of the current year:
May and August were the lowest and highest activity levels,and Lisle uses the high-low method to analyze cost behavior.If maintenance hours are estimated to be 26,000 hours in October,which of the following statements is true?

• A)Total maintenance costs will be $1,175,000.
• B)Total maintenance costs will be $1,182,000.
• C)Total maintenance costs will be $1,193,000.
• D)Total maintenance costs will be $1,221,000.
• E)Total maintenance costs will be $1,247,000.

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Definitions:

Standard Deviation

A statistical measure of the dispersion or variability of a set of values, indicating how much the values in a data set differ from the mean.

Well-diversified Portfolio

An investment strategy that spreads risk by allocating investments among various financial instruments, sectors, or other categories.

Variability of Returns

The extent of fluctuation in the returns on an investment over a certain period of time, often used as a measure of investment risk.

Business-specific Risk

This is the risk associated with the unique factors impacting a specific company or industry, excluding broader market or economic risks.