The Variable D^- Measures

question 4

Multiple Choice

The variable d^- measures

• A) the amount over the target and is similar to a slack.
• B) the amount under the target and is similar to a slack.
• C) the amount over the target and is similar to a surplus.
• D) the amount under the target and is similar to a surplus.

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Definitions:

Dependent Variable

A variable that responds to some causal factor; total cost is the dependent variable, as represented by the letter Y, in the equation Y = a + bX.

Fixed Cost

Costs that do not change with the level of production or sales, such as rent or salaries.

Total Expense

The sum of all costs and expenses associated with the operations of a business.

Level Of Activity

A measure of the amount of output or work performed, often used in accounting to allocate fixed costs or in operational planning.