91) Explain the difference between a step cost and a mixed cost.

92) Explain management influences on cost behaviour.

93) Explain the difference between committed fixed costs and discretionary fixed costs and give an example of each.

94) The Arnott Company incurred the following maintenance costs during the past six months:

MonthMachine HoursMaintenance Cost







a. The two points that seem to best represent the relationship between cost and activity are the activity levels of 100,000 and 140,000 machine hours.  Using these two points, estimate the fixed and variable components of maintenance costs.

b. Develop a cost function that the Arnott Company can use to estimate maintenance cost at different volume levels.

c. Estimate maintenance cost for July if the company expects to use 110,000 machine hours.

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