Variance in a Behavior That Is Not Related to the Variables

question 31

Multiple Choice

Variance in a behavior that is not related to the variables that an investigator is investigating is

• A)systematic variance.
• B)standard variance.
• C)error variance.
• D)total variance.

---

Definitions:

Unit Contribution Margin

The amount each unit sold contributes towards covering fixed costs and generating profit, calculated as the selling price per unit minus the variable cost per unit.

Operating Income

Earnings before interest and taxes (EBIT), measuring a company's profit from its operational and regular business activities.

Fixed Costs

Expenses that do not change in relation to the volume of production or sales, such as rent, salaries, and insurance.

Operating Leverage

A measure of the relative mix of a business’s variable costs and fixed costs, computed as contribution margin divided by operating income.