(Appendix 5A) Electrical Costs at One of Rome Corporation's Factories

question 72

Multiple Choice

(Appendix 5A) Electrical costs at one of Rome Corporation's factories are listed below:
Management believes that electrical cost is a mixed cost that depends on machine-hours.
-Using the high-low method,the estimate of the variable component of electrical cost per machine-hour is closest to:

• A) $2.11
• B) $1.80
• C) $2.21
• D) $0.47

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Definitions:

Organization Development

A planned effort to increase an organization's effectiveness and health through interventions in its processes, aiming at improving overall performance.

Skills Training

Increasing the job knowledge, skills, and abilities that are necessary to do a job effectively.

Process Consultation

A method used in organizational development where a consultant helps a client organization improve its internal processes through observation and advice without taking direct action.

Successful Outcome

The achievement of intended goals or results in a given endeavor.