A Positive Correlation Indicates That

question 32

Multiple Choice

A positive correlation indicates that:

• A) as the value of one variable increases, one can predict that the value of the other will also increase.
• B) as the value of one variable increases, one can predict that the value of the other will decrease.
• C) little or no relationship exists between two variables.
• D) one variable causes the other.

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Definitions:

Cost of Goods Sold

The total cost directly attributed to the production of goods that were sold, including materials, labor, and overhead.

Overapplied Overhead

A situation where the overhead allocated to products or services is more than the actual overhead costs incurred.

Factory Equipment

The machinery and tools used in the manufacturing process of a product, typically considered a long-term asset.

Administrative Expense

Costs related to the general operation of a company, such as salaries of executive personnel, office supplies, and utilities, not directly related to production or sales.