The Maintenance Expenses of a Company Are to Be Analyzed

question 29

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 $20,000 and $14,000;Machine hours 55,000 and 35,000.
Using the high-low technique,estimate the annual fixed cost for maintenance expenditures:

• A)$42,000.
• B)$40,000.
• C)$30,000.
• D)$44,000.
• E)$38,000

---

Definitions:

Communication

The process of exchanging information, ideas, feelings, and meanings through verbal or non-verbal methods.

Cross-cultural Communication

The process of recognizing and understanding the differences and similarities in communication across various cultures to effectively communicate.

Symbolic Gestures

Symbolic gestures are actions performed to convey particular intentions or meanings without using words, often carrying significant symbolic value in social or cultural contexts.

Canadian Company

A business entity registered, operating, or headquartered in Canada, subject to Canadian business laws and regulations.