If at a Given Volume Total Costs and Fixed Costs

question 261

Multiple Choice

If at a given volume total costs and fixed costs are known, the variable costs per unit may be computed as follows:

• A) (total costs − fixed costs) / unit volume
• B) (total costs / unit volume) − fixed costs
• C) (total costs × unit volume) − (fixed costs / unit volume)
• D) total costs − (fixed costs / unit volume)

---

Definitions:

Prediction Error

The difference between an observed value and the value predicted by a model.

Linear Regression

A statistical method for modeling the relationship between a dependent variable and one or more independent variables.

Correlations

A numerical value representing the level at which multiple variables co-vary.

Slope

The measure of the steepness or incline of a line, describing both its direction and its steepness.