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Use Eron's study on TV violence and aggression to show how both the directionality problem and the third variable problem can be solved.
Unit Variable Costs
Costs that vary directly with the level of production or output, such as materials and labor, calculated on a per unit basis.
Static Budget
A financial plan that does not change or adjust over the period, even when there are significant changes in the levels of activity.
Variable Costs
Expenses that change in proportion to the level of activity or production volume.
Static Budget
A budget that does not change or adapt over time, based on the assumption of a fixed level of activity.
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