Figure 3-13

question 86

Multiple Choice

Figure 3-13.The following 6 months of data were collected on electricity cost and the number of machine hours in a factory.
-Refer to Figure 3-13. An independent variable value used in calculating the cost line using the high-low method is:

• A) $27,950
• B) 5,430
• C) $25,160
• D) 4,000

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Definitions:

Master Budget

A comprehensive financial plan for an organization, encompassing all of its budgets for sales, production, overhead, etc., for a specific period.

Long-Range Budget

A financial plan that extends beyond the typical fiscal year, often spanning three to five years, to support strategic planning.

Participative Budgeting

A budgeting process where both management and employees participate in setting budgets, improving accuracy and commitment.

Budgeting Slack

The practice of underestimating revenue or overestimating expenses while preparing a budget to create a cushion or slack for unexpected situations.