The Following Data Pertains to Activity and Utility Cost for Two

question 59

Multiple Choice

The following data pertains to activity and utility cost for two recent periods: Utility cost is a mixed cost with both fixed and variable components. Using the high-low method, the cost formula for utility cost is:

• A)Y = $1.00 X
• B)Y = $1.25 X
• C)Y = $4,000 + $0.50 X
• D)Y = $1,500 + $1.25 X

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Definitions:

Gross Domestic Product

The total value of all goods and services produced within a country's borders in a specific time period, a primary indicator of economic health.

Value Added

The increase in value that a company adds to its inputs or raw materials before selling the final product, typically measured as the difference between input costs and output prices.

Government Bond

A type of investment security issued by a government to finance its expenditures, offering periodic interest payments and the return of principal at maturity.

Real Goods

Physical products or commodities that can be touched, seen, and used, contrasting digital or virtual goods.