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Commerce · Q428

Costing

Graduate and Post Graduate · Commerce · question 428

Q428

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
Answer
C.
$400
D.
$20,000

Answer: Option B

Solution

Answer: Option B
Solution:
Slope coefficient = Difference between costs linked to highest and lowest observation of cost driver ÷ Observation of cost driver
= 200
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