Comco, Inc

question 62

Multiple Choice

Comco, Inc.has accumulated the following data for the cost of maintenance on its machinery for the last four months: Assume that the relevant range includes all of the activity levels mentioned in this problem. Assuming Comco uses the high-low method of analysis, if machine hours are budgeted to be 20, 000 hours then the budgeted total maintenance cost would be expected to be:

• A)$25, 400
• B)$25, 560
• C)$23, 700
• D)$24, 720

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Definitions:

IASB

stands for the International Accounting Standards Board, which is an independent, private-sector body that develops and approves International Financial Reporting Standards (IFRS).

Measurement (Cost) Principle

An accounting principle that states that accounting information should be based on actual cost.

Purchasing Managers

Professionals responsible for buying goods and services for their company, aiming for the best quality at the most cost-effective price.

Suppliers

Individuals or companies that provide goods or services to another entity, typically part of the supply chain in manufacturing processes.