If slope coefficient is 0.60 and difference in machine hours is 50000, then difference in cost can be
A. $68,700
B. $58,700
C. $30,000
D. $83,333.34
Answer: Option C
Solution(By Examveda Team)
Slope coefficient = Difference in costs ÷ Difference in machine hoursDifference in cost = Difference in machine hours × Slope coefficient
= 50000 × 0.60 = $30,000
Join The Discussion
Comments ( 1 )
Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
If we divide 50000/.60 Answer will be D $83333.3 please correct it