Liva Company Wants to Develop a Cost Function for Its

question 100

Multiple Choice

Liva Company wants to develop a cost function for its maintenance costs to estimate such costs for the coming year. The following data are available: Direct Maintenance
Month Labour Hours Costs Incurred
January 4,000 $ 900
February 6,500 1,325
March 7,000 1,500
April 5,500 1,150
Using the high-low method, what is the fixed maintenance cost?

• A)$500
• B)$300
• C)$200
• D)$100

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Definitions:

Experimental Method

The only research method that can be used to identify cause–effect relationships between two or more conditions or variables.

Contact Comfort

The psychological and emotional comfort that an infant derives from being in physical contact with its caregiver, crucial for bonding and development.

Artificial Mothers

A term that might refer to surrogate mother mechanisms or devices used in psychological or animal behavior experiments to study attachment and maternal bonding.

Attachment

An emotional bond between individuals, such as between children and their caregivers, that is crucial for personal development.