Using the High-Low Method If the Highest Maintenance Cost and Machine

question 58

Multiple Choice

Using the high-low method if the highest maintenance cost and machine hours are $50 000 and 10 000 respectively and the lowest maintenance cost and machine hours are $20 000 and 4000 respectively, the variable maintenance costs per machine hour are:

• A) $6.
• B) $2.50.
• C) $5.
• D) $4.50.

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Definitions:

Metaphorical

Pertaining to or characterized by metaphors, using one thing to represent another in order to convey meaning or make a comparison.

Fabricated

implies something that has been made or constructed, often with the intention to deceive or give a false impression.

Descriptive

pertains to the act of describing or detailing attributes, characteristics, or the nature of something.

Antonym

A word that has the opposite meaning of another word.