A Random Variable That May Take on Any Value in an Interval

question 56

Multiple Choice

A random variable that may take on any value in an interval or collection of intervals is known as a _____ random variable.

• A) continuous
• B) discrete
• C) mixed type
• D) multivariate

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Definitions:

Standard Cost

A predetermined cost of manufacturing a single unit or a number of product units during a specific period under normal conditions.

Variable Overhead

Costs that vary with production volume, such as utilities or materials, which do not remain fixed over time.

Cost Driver

A factor that causes the cost of an activity to increase or decrease, such as machine-hours, labor hours, or production volume.

Budget Variance

The difference between the budgeted or planned amount of expense or revenue, and the actual amount incurred or earned.