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At Folger U

question 160

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At Folger U., Drs. Chase and Sanborn are conducting an experiment on the effects of caffeine on memory. Participants are randomly assigned to a caffeine or a no caffeine group; their recall of items on a word list is later assessed. Which pair below correctly names and identifies the variables in this experiment?


Definitions:

Variable Component

The portion of cost or expense that varies directly with changes in output or activity level.

Pre-tax Income

Pre-tax Income is the amount of income earned by a business before any taxes have been deducted.

Contribution Margin

The sum by which the income from sales surpasses variable expenses, showing the extent to which revenue aids in covering fixed costs and generating profit.

High-low Method

A technique used in accounting and finance to estimate variable and fixed costs based on the highest and lowest levels of activity.

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