The Variation in the Dependent Variable That Is Produced by the Independent

question 20

Multiple Choice

The variation in the dependent variable that is produced by the independent variable is called:

• A)extraneous variability.
• B)systematic error variability.
• C)experimental variability.
• D)random error variability.

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Definitions:

Contribution Margin

The sum by which the income from sales surpasses variable expenses, showing the extent to which revenue aids in covering fixed costs and generating profit.

High-low Method

A technique used in accounting and finance to estimate variable and fixed costs based on the highest and lowest levels of activity.

Variable Component

An element of cost or expense that varies directly with changes in production volume, business activity, or other drivers.

Contribution Margin Ratio

The percentage of each sales dollar remaining after variable costs have been deducted, indicating how much contributes to fixed costs and net profit.