Management Accounting

Use the following to answer question 1:

Marger, Inc., provided the following data for two recent months:

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|1. |Which of the following classifications best describes the behavior of Cost T? |
|A) |Variable |
|B) |Fixed |
|C) |Mixed |
|D) |None of the above |

|2. |The following data pertains to activity and maintenance costs for two recent years: |
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| |Using the high-low method, the cost formula for maintenance would be: |
|A) |$1.50 per unit. |
|B) |$1.25 per unit. |
|C) |$3,000 plus $1.50 per unit. |
|D) |$6,000 plus $0.75 per unit. |

|3. |Rible Company has observed that at an activity level of 8,000 units the cost for maintenance