Because Direct Costs Are Assumed to Be Developed from Normal

question 6

Multiple Choice

Because direct costs are assumed to be developed from normal methods and in a normal amount of time, any reduction in activity time should ________ the direct cost of the activity.

• A) decrease
• B) increase
• C) reduce
• D) expand
• E) approximate

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Definitions:

Least Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of the squares of the vertical distances of the points from the line.

Calories

Units of energy measurement used to quantify the energy that foods provide to the body.

Sugar

A sweet crystalline substance obtained primarily from sugarcane and sugar beet, used as a sweetener in food and drink.

Slope

The rate at which a dependent variable changes with respect to an independent variable in a linear relation.