Discretionary Fixed Costs

question 134

Multiple Choice

Discretionary fixed costs

• A) cannot be easily changed.
• B) often involve a long-term contract.
• C) can be changed relatively easy at management discretion.
• D) increase as output increases.

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Definitions:

Covariance

A measure used to determine how two variables change together, indicating the direction of the relationship.

Variance

A statistical measurement of the dispersion of data points in a data set around the mean, indicating the extent to which the numbers differ from each other.

Correlation Coefficient

A statistical measure that determines the degree to which two variables move in relation to each other, where +1 indicates a perfect positive correlation and -1 indicates a perfect negative correlation.

Correlation Coefficient

The correlation coefficient is a statistical measure that calculates the strength and direction of a linear relationship between two variables on a scale of -1 to 1.