Which One of the Following Terms Is the Measure of the Tendency

question 12

Multiple Choice

Which one of the following terms is the measure of the tendency of two things to move or vary together?

• A) variance
• B) squared deviation
• C) standard deviation
• D) alpha
• E) covariance

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Definitions:

Contribution Margin Ratio

A financial metric that shows the percentage of sales revenue remaining after variable costs are subtracted, indicating how efficiently a company can produce and sell products.

Break-even Point

A point where total cost and total revenue are equal, indicating no profit or loss and where production or sales start becoming profitable.

Fixed Expenses

Overheads such as rent, employee salaries, and insurance that do not fluctuate with changes in sales or manufacturing volumes.

Contribution Margin Per Unit

The selling price per unit minus the variable cost per unit, indicating how much contributes to covering fixed costs and profit.