The Horizontal Line Intersecting the Vertical Y-Axis at the Level

question 274

Multiple Choice

The horizontal line intersecting the vertical y-axis at the level of total cost on a CVP graph represents

• A)total costs.
• B)total variable costs.
• C)total fixed costs.
• D)breakeven point.

---

Definitions:

Null Hypothesis

A default hypothesis that there is no significant difference or relationship between specified populations, any observed effect is due to sampling or experimental error.

Type I Error

The statistical error that occurs when a true null hypothesis is incorrectly rejected.

Correct Decision

A conclusion or judgement that is accurate, based on the evaluation of evidence or data.

Type II Error

Occurs in hypothesis testing when a false null hypothesis is not rejected, leading to the false conclusion that a difference or effect does not exist when it actually does.