A-AS Level (CIE) Business Studies Paper-1: Specimen Questions with Answers 11 - 12 of 50
Question 11
Explanation
| S. No. | Fixed Cost | Variable Cost |
| 1 | Fixed cost is the cost which are not output dependent | Variable cost is those cost which are output dependent |
| 2 | Fixed cost is fixed till certain level of output | There is positive correlation between the production output and the variable cost |
| 3 | Fixed cost per unit changes with output | Variable cost per unit remains constant |
| 4 | These costs are found only in the short period | These costs are seen in short and long period |
Question 12
Explanation
Averages occupy an important place in statistics. It represents a large group in such a way that mind can grasp simply and quickly. They are the bases of many other techniques of statistical analysis. This is the reason for Dr. Bowley defining statistics “as the science of average” . Averages are widely used than any other statistical measure because of their applications and functions. Importance of averages in statistical analysis is obvious in the words of Prof. R. A. Fisher, “The inherent inability of the human mind to grasp in its entirety a large body of numerical data compels us to seek relatively few constants that will adequately describe the data.” According to Dr. Bowley, “By the use of averages complex groups and large numbers are presented in a few significant words of figures.”