When a Correlation Is Discovered Between Two Variables, a and B

question 90

Multiple Choice

When a correlation is discovered between two variables, A and B, it is possible, though not certain that

• A) A has caused B
• B) B has caused A
• C) X has caused A plus B
• D) all of these

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Definitions:

Traditional Format

A method of organizing income statement or other financial statements using a conventional structure, typically separating costs into fixed and variable categories.

Variable Selling Expense

Costs that vary directly with the volume of sales or production, such as commissions and shipping charges.

Fixed Selling Expense

The costs associated with selling a product or service that do not vary with sales volume, such as salaries of sales staff and advertising expenses.

Variable Administrative Expense

Costs associated with administrative activities that vary with the level of business activity or output.