The Following Model Is Referred to as a

question 24

Multiple Choice

The following model is referred to as a

• A)curvilinear model
• B)curvilinear model with one predictor variable
• C)simple second-order model with one predictor variable
• D)simple first-order model with one predictor variable

---

Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to covering fixed costs and generating profit.

Manufacturing Margin

The difference between the cost of goods sold by a manufacturing company and its total sales, reflecting the gross margin specific to manufacturing operations.

Absorption Costing

A costing method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of goods sold.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed overhead.