The Following Data Pertains to Activity and Utility Cost for Two

question 44

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:

Political Model

A framework for understanding organizational decision-making that emphasizes power, conflicting interests, and the use of negotiation and alliances to achieve objectives.

Ethical Principles

Fundamental guidelines or values that dictate the conduct considered correct or moral in a particular society, organization, or profession.

Distributive Justice Principle

A principle concerned with the fair distribution of benefits and burdens among members of a society or group.

Organizational Creativity

The ability of a company or group to generate innovative ideas and solutions.