28. C. Vehicle insurance
Because only vehicle insurance is a valid fixed cost for the delivery activity.
29. D. Variable cost index
30. C. Engineering Approach
31. B. Extremely Different
Because scattered plot method will consider all the available points while the high low method consider only two points that is high and low scattered plot method is more reliable than high low method.
32. a. 0.06$
Using high low method-:
= (highest cost- lowest cost)/(highest production- lowest production
=(1094-954)/(12932-10600)
= 0.06
33. C.318$
Variable cost when production is 10600 = 10600*0.06= 636$
Fixed cost = total - variable cost
= 954-636
= 318$
34. d. 1002$
Variable cost = 11400*0.06 = 684$
Fixed cost = 318$
Total cost= 684$+318$ = 1002$
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28-34 28. An example of a fixed cost related to delivery activity is: a. rent on...
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