The Phone Bill for an Accounting Firm Consists of Both

question 16

Multiple Choice

The phone bill for an accounting firm consists of both fixed and variable costs. Refer to the 4-month data below and apply the high-low method to answer the question. (Round your intermediate calculations to two decimal places) What is the fixed portion of the total cost?

• A)$1,850
• B)$2,225
• C)$2,425
• D)$2,625

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Definitions:

Common Dividends

Profits distributed to shareholders of common stock, reflecting the company's earnings and financial health.

Effective Tax Rate

The average rate at which an individual or business is taxed on their total income, after deductions and credits.

GAAP

Generally Accepted Accounting Principles, which are a collection of commonly followed accounting rules and standards for financial reporting.

Quarterly Income

The net income earned by a company during a three-month period, typically reported in quarterly financial statements.