The Maintenance Expenses of a Company Are to Be Analyzed

question 86

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 technique,estimate the annual fixed cost for maintenance expenditures:

• A)$447,000.
• B)$240,000.
• C)$230,000.
• D)$384,000.
• E)$228,000

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Definitions:

Chain of Command

The hierarchy of authority in an organization that determines how instructions are passed down and accountability is enforced.

Formal Channels

Established pathways for communication within an organization, typically outlined in its hierarchy or organizational structure.

Grapevines

Informal communication channels within organizations where information, rumors, and gossip are spread unofficially among employees.

Incorrect Information

Data or facts that are wrong, misleading, or inaccurately presented.