Answer the Following Questions Using the Information Below:
at the Verill

question 64

Multiple Choice

Answer the following questions using the information below:
At the Verill Company, the cost of the library and information center has always been charged to the various departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of engineers within a department might be a better predictor of library and information center costs.
$$\begin{array}{l}\text { Total library and information center costs are } \$ 200,000 \text {. }\\\begin{array} { l r r r } \text { Department } & \text { A } & \text { B } & \text { C } \\\text { Number of employees } & 135 & 530 & 135 \\\text { Number of engineers } & 0 & 80 & 20\end{array}\end{array}$$
-Which cost estimation method is being used by Verill Company?

• A) the regression analysis method
• B) the marginal costing method
• C) the conference method
• D) the operating costing method

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Definitions:

Total Utility

The complete satisfaction or pleasure a consumer obtains from consuming a given quantity of goods or services.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, reflecting their preferences for certain combinations of goods.

Budget Constraint

Constraints on the assortments of products and services available for purchase by a consumer, determined by their financial resources and market prices.

Tangent

A straight line that touches a curve at a single point without crossing it, often used to find the slope of the curve at that point.