The Maintenance Expenses of a Company Are to Be Analyzed

question 6

Multiple Choice

The 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: Highest and Lowest: Cost per month $42,000and $34,000;Machine hours 46,000 and 30,000.Using the high-low method,the estimated variable cost per machine hour is:

• A)$0.70
• B)$0.60
• C)$0.50
• D)$0.90
• E)$0.10

---

Definitions:

Level of Significance

The threshold chosen by the researcher below which a p-value indicates that the observed result is statistically unlikely to have occurred by chance.

Expected Frequency

The predicted number of times an event will occur over a specified period in a statistical experiment.

Cramér's V

Cramér's V is a measure of association between two nominal variables, giving a value between 0 and 1 to indicate the strength of the relationship.

Cramér's V

A measure of association between two nominal variables, giving a value between 0 and 1.