If difference between costs linked to highest and lowest observation of cost driver is $8000 and observation of cost driver is 40 machine hours, then slope coefficient will be
A. $16,000
B. $200
C. $400
D. $20,000
Answer: Option B
Solution(By Examveda Team)
Slope coefficient = Difference between costs linked to highest and lowest observation of cost driver ÷ Observation of cost driver= $8000 ÷ 40 = $200
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