When Changes in One Variable Are Usually Accompanied by Changes

question 12

Multiple Choice

When changes in one variable are usually accompanied by changes in the same direction in another variable,the variables are said to be:

• A)correlated
• B)causally related
• C)regressing toward the mean
• D)genetically determined

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Definitions:

Fixed Costs

Costs that do not fluctuate with the level of production or sales, such as rent, insurance, and salaries.

Sales Dollars

The total monetary value of sales transactions completed within a specific period.

High-Low Method

A technique used in managerial accounting to estimate fixed and variable costs associated with production.

Break-Even Point

The financial calculation where total revenues equal total expenses, resulting in no profit or loss.