Which of the Following Must Be Known About a Production

question 2

Multiple Choice

Which of the following must be known about a production process in order to institute a variable costing system?

• A)the variable and fixed components of all costs related to production
• B)the controllable and non-controllable components of all costs related to production
• C)standard production rates and times for all elements of production
• D)contribution margin and break-even point for all goods in production

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Definitions:

Scatterplot

A graphed cluster of dots, each of which represents the values of two variables. The slope of the points suggests the direction of the relationship between the two variables. The amount of scatter suggests the strength of the correlation (little scatter indicates high correlation).

Normal Curve

A bell-shaped curve that represents the distribution of many types of data where most values are close to the mean.

Standard Deviations

A statistical measure that quantifies the amount of variation or dispersion of a set of values.

Positive Correlation

A relationship between two variables where an increase in one variable is associated with an increase in the other variable.