A System of Ideas Designed to Interrelate Concepts and Facts

question 87

Multiple Choice

A system of ideas designed to interrelate concepts and facts in a way that summarizes existing data and predicts future observations is known as a(n)

• A) hypothesis.
• B) theory.
• C) commonsense statement.
• D) operational definition.

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Definitions:

Variable Expenses

Costs that change in proportion to the activity of a business, such as raw materials and direct labor costs.

Fixed Expenses

Costs that do not change with the level of production or sales over a short period, such as rent or salaries.

Break Even

A financial situation where total costs equal total revenues, resulting in no net profit or loss.

Break-Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain for the business.