Mean Error (ME)and Mean Absolute Deviation (MAD)will Have the Same

question 74

True/False

Mean error (ME)and mean absolute deviation (MAD)will have the same numerical value if all errors are positive.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or business activity. Examples include raw materials, packaging, and direct labor.

Fixed Costs

Fixed Costs are business expenses that remain constant regardless of the volume of goods or services produced, such as rent, salaries, and loan payments.

Favorable Volume Variance

A metric that indicates a company has produced or sold more than initially anticipated, leading to increased profitability.

Contribution Margin

The difference between the sales revenue of a company and its variable costs.