Suppose That We Have a Qualitative Variable Month with Categories

question 71

Multiple Choice

Suppose that we have a qualitative variable Month with categories: January, February, etc. How many dummy variables are needed to describe Month?

• A) 12
• B) 11
• C) 10
• D) 9

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Definitions:

Materials Price Variance

The difference between the actual cost of materials and the expected (or standard) cost, used in budgeting and cost management.

Materials Quantity Variance

Materials Quantity Variance is the difference between the actual amount of materials used in production and the expected (or standard) amount, affecting cost management.

Purchasing Department

The division within a business that is responsible for making all procurements or purchases necessary for the company's operations.

Production Department

A segment within a business that is responsible for the manufacturing or production of goods.