The Following Information Is Available for a Company's Utility Cost

question 29

Multiple Choice

The following information is available for a company's utility cost for operating its machines over the last four months. Using the high-low method,the estimated total fixed cost for utilities is:

• A)$1,500.
• B)$3,600.
• C)$6,000.
• D)$3,300.
• E)$2,100.

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Definitions:

Time-Weighted Return

A method of calculating investment returns that eliminates the impact of cash flows into and out of the portfolio, focusing solely on the performance of the investments themselves.

Information Ratio

A measure of portfolio returns beyond the returns of a benchmark, divided by the volatility of those returns.

Residual Standard Deviation

A measure of the amount by which an observed value differs from the value predicted by a model, indicating the precision of the model.

Geometric Average Return

A method to calculate the average rate of return per period on an investment, compounded over multiple periods.