Variable Costs Are Represented Graphically As

question 52

Multiple Choice

Variable costs are represented graphically as:

• A)starting at zero and increasing as a straight line as activity increases.
• B)starting at a given point and increasing as a straight line as activity increases.
• C)a horizontal line, staying the same irrespective of the level of activity.
• D)the intersection of total costs and total revenue lines.

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Definitions:

Dummy Variables

Variables created to include categorical data in regression models by converting categories to a binary form (0 or 1), representing the presence or absence of some categorical effect.

Nominal Characteristic

A qualitative attribute of data that categorizes but does not imply any quantitative ordering or measure.

Nominal Variables

Factors that denote classifications without any inherent hierarchy or sequence.

Dummy Variables

Binary variables created to represent categorical data in order to use such variables in regression analysis.