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:

Equitably Administered

Managed or governed in a fair and impartial manner, ensuring justice and equality in treatment and services.

Equity Theory

A theory in social psychology that explains how individuals perceive fairness in the distribution of resources and rewards in relation to others.

Managerial Implications

The impacts or consequences that a decision, strategy, or finding has on the management or operational practices of an organization.

Pay

Compensation given to employees in exchange for their labor or services, often in the form of wages or salaries.