If a Study Finds That There Is a Strong Relationship

question 42

Multiple Choice

If a study finds that there is a strong relationship between two variables, this means that ____.

• A) the first variable causes a change in the second variable
• B) the second variable causes a change in the first variable
• C) you can draw the conclusion that each variable causes the other variable to change
• D) there is a relationship between the variables but causality has not been established

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable costs are deducted, contributing to covering fixed costs and generating profit.

Contribution Margin

The amount remaining from sales revenue after all variable expenses have been deducted, indicating how much revenue is contributing to fixed costs and profits.

Indirect Expenses

Costs that are not directly traceable to a specific cost object, such as overhead costs for running the business.

Contribution Margin

The amount by which a product's sales revenue exceeds its variable costs, indicating how much it contributes to covering fixed costs and generating profit.