Identify the Variable in the Information Below

question 6

Multiple Choice

Identify the variable in the information below. What is the average miles per gallon (mpg) for all new cars? Using Consumer Reports, a random sample of 35 new cars gave an average of 21.1 mpg.

• A)number of new cars surveyed
• B)cars
• C)miles
• D)miles per gallon
• E)gallons

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Definitions:

Unit Product Cost

The overall expense incurred to manufacture a single item, encompassing direct materials, direct labor, and overhead costs.

Absorption Costing

Absorption costing is an accounting method that includes all of the manufacturing costs (direct materials, direct labor, and overhead) in the cost of a product.

Variable Costing

An accounting method that only considers variable costs in the cost of goods sold and is used in internal financial analysis.

Income Statement

A financial document that shows a company's revenues, expenses, and net income over a specific period.