The Maintenance Expenses of a Company Are to Be Analyzed

question 102

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 $86,000 and $74,000;Machine hours 96,000 and 66,000.
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:

Expenses

Expenses are the costs incurred during the operation of a business or the execution of a project, including but not limited to materials, labor, and overhead costs.

Standard Operating Procedures

Detailed, written instructions designed to achieve uniformity in the performance of a specific function or operation within an organization.

Employee Handbooks

Employee handbooks are comprehensive manuals provided by employers to their employees, detailing the organization's history, mission, values, policies, procedures, and benefits.

Stated

Explicitly expressed or declared.