Given the Following Cost and Activity Observations for Bounty Company's

question 40

Multiple Choice

Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to calculate Bounty' variable utilities costs per machine hour.

• A) $10.00
• B) $.67
• C) $.63
• D) $.11

---

Definitions:

Inflation Reduction

Efforts or policies aimed at slowing the rate of inflation in order to stabilize the economy and maintain the purchasing power of currency.

Natural Rate

Often referred to as the natural rate of unemployment, it is the level of unemployment consistent with a stable inflation rate.

Phillips Curves

The economic theory suggesting an inverse relationship between inflation and unemployment rates over the short-term.

Expected Inflation

The rate of inflation that consumers, businesses, and investors anticipate will occur in the future, which can influence economic behavior in the present.