The Following Data Pertains to Activity and Utility Cost for Two

question 41

Multiple Choice

The following data pertains to activity and utility cost for two recent periods: Utility cost is a mixed cost with both fixed and variable components.Using the high-low method, the cost formula for utility cost is:

• A)Y = $1.65 X
• B)Y = $1.75 X
• C)Y = $3,750 + $1.75 X
• D)Y = $6,000 + $1.25 X

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Definitions:

Owner's Equity Statement

A financial document that details the changes in the owner’s equity of a business over a period of time, including investments, withdrawals, and net income.

Worksheet

A document used by accountants to organize and summarize financial information for the preparation of financial statements.

Credits

Entries in accounting that increase liabilities or equity, or decrease assets, representing the opposite of debits.