Use the Information Below to Answer the Following Question(s)

question 235

Multiple Choice

Use the information below to answer the following question(s) .At the high point of the relevant range, labour hours at Bradco Restoration were 10,000 and wages were $22,500.At the low point of the relevant range, labour hours were 7,500 and wages were $17,500.
-When using the high-low method, the two observations used are the high and low observations of the

• A)cost driver.
• B)dependent variables.
• C)outliers.
• D)mixed costs.
• E)total pool cost.

---

Definitions:

Assignable Causes

Factors identified as reasons for variation in a process, which can be isolated and where corrective action can be applied.

Process Capability Ratio

A statistical measure that evaluates the ability of a production process to produce output within specified limits.

Process Capability Index

A statistical measure that quantifies how well a process is able to produce output within specification limits compared to the spread of the process values.

Acceptance Plan

An Acceptance Plan outlines the criteria and process by which project deliverables are verified and accepted by stakeholders.