A Latent Variable Is

question 4

Multiple Choice

A latent variable is:

• A) an idea or construct we cannot directly observe, but still wish to measure.
• B) a variable that can be directly observed and is measured in a research study.
• C) the dependent variable when performing structural equation modeling.
• D) the dependent variable when performing multiple regression.

---

Definitions:

Variable Costing

An accounting method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of goods sold, treating fixed manufacturing overhead as an expense of the period in which it is incurred.

LIFO Inventory

A method of inventory valuation that assumes the last items placed in inventory are the first sold (Last In, First Out).

Absorption Costing

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Variable Costing

An accounting method in which variable manufacturing costs are included in product costs, while fixed manufacturing overhead is treated as an expense of the current period.