The Maintenance Expenses of a Company Are to Be Analyzed

question 20

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:
Using the high-low-point method of analysis,the estimated variable cost per machine hour is:

• A)$1.25.
• B)$12.50.
• C)$0.80.
• D)$0.08. Unit variable cost = ($39,200 - $32,000)/(24,000 - 15,000)= $0.80

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Definitions:

Alternative Hypothesis

A statement that contradicts the null hypothesis and is tested to determine if there is evidence to support it.

Mean Difference

Mean difference, also known as the average difference, refers to the arithmetic mean of differences between paired observations in two sample sets.

Same Individuals

Referring to using the same group of subjects or samples in different conditions or periods of a study or experiment.

Matched Pairs

A study design in which subjects are paired based on certain characteristics, with one subject from each pair receiving each treatment.