If the difference in costs is $9000 and the difference in machine hours is $15000, then slope coefficient would be ___________?
Correct answer: C. 0.6
- A. 1.24
- B. 0.24
- C. 0.6
- D. 1.667
Explanation
The slope coefficient is calculated as change in cost divided by change in machine hours: $9,000 ÷ $15,000 = 0.6. The units in the stem are unusual for hours, but the numerical calculation still gives option c.
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Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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