The Following Data Pertain to Activity and Utilities Costs for Two

question 105

Multiple Choice

The following data pertain to activity and utilities costs for two recent years:
$\begin{array}{|l|r|r|}\hline & \text { Year 2 } & \text { Year 1 } \\\hline \text { Activity Level in Units } & 10,000 & 6,000 \\\hline \text { Utilities Cost } & \$ 12,000 & \$ 9,000 \\\hline\end{array}$
Using the high-low method,what is the cost formula for utilities?

• A) $1.20 per unit.
• B) $1.50 per unit.
• C) $3,000 plus $3.00 per unit.
• D) $4,500 plus $0.75 per unit.

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Definitions:

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances, which results in unintended harm to another.

Liable

Legally responsible or obligated to make amends for harm caused by one's actions or negligence.

Action in Negligence

A legal claim brought against someone for harm caused by their failure to act as a careful person would under similar circumstances.

Doctrine of Strict Liability

A legal principle holding parties responsible for damages or harms caused by their actions, regardless of fault or intention.