Which of the Following Is Not True of Correlation

question 143

Multiple Choice

Which of the following is not true of correlation?

• A) The fact that there is a correlation between two variables means that one variable causes the other, but it isn't clear which is cause and which is effect.
• B) A negative correlation means that an increase in the value of one variable is associated with a decrease in the value of the other variable.
• C) The number in a correlation coefficient indicates the relative strength of the relationship between two variables-the higher the number, the stronger the relationship.
• D) Correlations are useful in making predictions. The stronger the relationship between the variables, the better the prediction.

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Definitions:

Job Cost Sheets

Documents that record and compile all costs associated with a specific job, including materials, labor, and overhead.

Job Order Costing

An accounting method that captures the costs associated with creating specific products or services, suitable for customized orders.

Job Lot

A small quantity of goods produced together because of a specific customer order or production decision.

Period Costs

Expenses that are not directly tied to the production process and are expensed in the period they are incurred.