# 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.”*