When Is a Dummy Variable Used as an Independent Variable

question 157

Multiple Choice

When is a dummy variable used as an independent variable in a regression model?

• A)when the variable involved is numerical
• B)when the variable involved is categorical
• C)when the variable involved is continuous
• D)when two independent variables interact

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Definitions:

Process Costing

An accounting methodology used for homogeneous products, attributing costs to units of product on an average basis.

Conversion Costs

Conversion costs are the costs incurred to convert raw materials into finished goods, and typically include direct labor and manufacturing overhead expenses.

Weighted-Average Method

A costing method for inventory that determines the cost of goods sold and the remaining inventory value by averaging the costs of all available units for sale throughout the period.

Equivalent Units

A concept in cost accounting that is used to allocate costs to the production process when there is more than one stage of production, converting work-in-process into complete units of output.