Communality Is the Percent of a Variable's Variance Which Contributes

question 4

True/False

Communality is the percent of a variable's variance which contributes to the correlation with other variables or is common to other variables.

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Definitions:

Unit Product Cost

The total cost (fixed and variable) assigned to a unit of product, determining its cost of production per unit.

Variable Costing

An accounting method that only allocates variable costs to products, excluding fixed overhead costs.

Net Operating Income

The profit generated from a company's core business operations, excluding expenses and revenues that are unrelated to the primary activities of the business.

Absorption Costing

A method of accounting for costs in which all costs of manufacturing a product (including variable and fixed overhead costs) are considered product costs.