The Following Four Months of Data Were Collected on Utility

question 13

Multiple Choice

The following four months of data were collected on utility cost and the number of labour hours in Edmonton Company's factory.
$\begin{array}{lrr}& \text { Utility } & \text { Labour } \\\text { Month } & \text { cost } & \text { hours }\\\text { May } & \$ 22,100 & 3,975 \\\text { June } & 24,600 & 5,430 \\\text { July } & 23,500 & 4,400 \\\text { August } & 20,140 & 3,200\end{array}$
-Refer to the Figure.Which of the following is the set of high and low months? High Low

• A)June August
• B)June July
• C)May July
• D)May August

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Definitions:

Sales Discounts

Reductions in the price of goods sold, offered to customers as an incentive to either prompt payment or increase sales volume.

Vouchers Payable

Liabilities or debts owed by a company for purchases made on credit, documented by vouchers.

Gross Method

An accounting practice where purchases are recorded at their full invoice amount without deducting any purchase discounts.

Periodic Method

An accounting approach used to value inventory and determine the cost of goods sold in which physical counts are done periodically, typically at the end of an accounting period.