Cattell Used a Statistical Technique Called Factor Analysis to Reduce

question 577

Multiple Choice

Cattell used a statistical technique called factor analysis to reduce a large number of visible traits into 16 __________ traits, or factors.

• A)surface
• B)source
• C)common
• D)cardinal

---

Definitions:

Cost-Volume-Profit Analysis

Cost-Volume-Profit Analysis is a managerial accounting technique that analyzes how changes in costs and volume affect a company's operating income and net income.

Unit Contribution Margin

The amount each unit sold contributes towards fixed costs and profits, calculated by subtracting variable costs per unit from the selling price per unit.

Variable Cost

Expenses that vary directly with the level of production or sales, such as materials and labor costs.

Pretax Income

Pretax income is the amount of income earned by a business before taxes have been deducted.