Given the Following Costs and Activities for Dance Company Electrical

question 23

Multiple Choice

Given the following costs and activities for Dance Company electrical costs,use the high-low method to calculate Dance's variable electrical costs per machine hour. ​

• A) ​$2.08
• B) ​$6.00
• C) ​$0.60
• D) ​$1.20

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Definitions:

Liquidity

The ease with which an asset or security can be converted into cash without affecting its market price.

Short-term Debt

Borrowings that are due for repayment within one year.

Common Size Analysis

A financial analysis technique that converts each line item of financial statements into a percentage of a base figure for easy comparison.

Base Amount

A reference amount from which adjustments are made, often used in calculations for taxes, benefits, or financial analysis.