The Following Information Is Available for a Company's Utility Cost

question 116

Multiple Choice

The following information is available for a company's utility cost for operating its machines over the last four months. Using the high-low method, the estimated variable cost per machine hour for utilities is:

• A) $3.38.
• B) $6.00.
• C) $2.50.
• D) $4.22.
• E) $6.17.

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Definitions:

Compensation

The total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed, including wages, salaries, bonuses, and benefits.

Third Market

A trading segment where exchange-listed securities are traded over-the-counter (OTC) between institutional investors, typically by brokerage firms or securities dealers to provide liquidity.

Fourth Market

A market where institutional investors trade securities directly among themselves without the use of a broker.

Difference

The result obtained when one quantity is subtracted from another.