In a Scatter Plot, When the Dots Are Close Together

question 38

Multiple Choice

In a scatter plot, when the dots are close together and fall in a relatively straight slanted line, what does this suggest?

• A) A strong positive or negative relationship
• B) A curvilinear relationship
• C) A dispersal of data that should be discarded
• D) A weak positive or negative relationship

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Definitions:

Variable Costing

An accounting method that considers only variable costs as product costs, with fixed costs treated as period costs.

Net Operating Income

A measure of a company's profitability, calculated by subtracting operating expenses from operating revenue.

Variable Costing

An accounting method that only allocates variable costs to inventory, treating fixed costs as period expenses that are charged to the income statement in the period they are incurred.

Absorption Costing

A method of inventory costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overheads - in the cost of a unit of product.