A Negative Correlation Means That

question 175

Multiple Choice

A negative correlation means that:

• A) the high values of one variable are associated with the low values of the other.
• B) the high values of one variable are associated with the high values of the other.
• C) the low values of one variable are associated with the low values of the other.
• D) there is no relationship between the two variables.

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Definitions:

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standardized expected quantity, valued at the standard cost per unit.

Direct Materials

Raw materials that are directly traceable to the production of a specific product and are significant in cost.

Favorable

A term usually used in finance and accounting to describe results that are better than anticipated or that result in a benefit.

Standard Direct Materials Costs

The budgeted or standard cost of the raw materials required to produce a unit of product.