We Predict an Outcome Variable from Some Kind of Model

question 21

Multiple Choice

We predict an outcome variable from some kind of model. That model is described by one or more _______ variables and ________ that tell us something about the relationship between the predictor and outcome variable.

• A)parameter, outcome variables
• B)dependent, predictors
• C)outcome, estimates
• D)predictor, parameters

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Definitions:

Variable Costing

A method of costing that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold and treats fixed manufacturing overhead as a period expense.

Absorption Costing

A method of accounting that encompasses all costs involved in manufacturing, including direct materials, direct labor, and both variable and fixed manufacturing overhead, as part of a product's cost.

Net Operating Income

The profit a company makes from its core business operations, excluding deductions of interest and taxes.

Net Cash Flow

The amount of cash generated or lost over a specific period, taking into account cash inflows and outflows from operational, investing, and financing activities.