Which of the Following Statements Is Correct

question 23

Multiple Choice

Which of the following statements is correct?

• A) When a line slopes downwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related.
• B) When a line slopes upwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related.
• C) If two variables are directly related, a graph of the two variables has a negative slope.
• D) The higher the temperature, the more ice cream people consume. Thus the temperature and ice-cream consumption are inversely related.
• E) None of the above statements is correct.

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Definitions:

Unfavorable Variance

A situation where actual costs exceed the standard or budgeted costs, often indicating inefficiencies or increased expenses.

Favorable Variance

A financial term indicating that actual costs were lower or revenues were higher than planned.

Budgeted Amount

The projected costs or revenues allocated to a specific activity or period, based on estimates.

Budget Ratcheting

The practice of setting future budget allocations based on the current period’s expenditures, discouraging under-spending in fear of budget cuts.