The Variance Inflationary Factor (VIF) Measures the

question 76

Multiple Choice

The Variance Inflationary Factor (VIF) measures the

• A) correlation of the X variables with each other.
• B) contribution of each X variable with the Y variable after all other X variables are included in the model.
• C) standard deviation of the slope.
• D) correlation of the X variables with the Y variable.

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Definitions:

Total Direct Materials Cost Variance

The difference between the budgeted cost of direct materials and the actual cost incurred for the materials.

Direct Materials

Raw materials that are directly used in the manufacturing of a product and can be easily traced to it.

Controllable Variance

The difference between expected and actual costs that managers have the power to influence directly.

Direct Labor Rate Variance

This refers to the difference between the actual cost of labor and the expected (or standard) cost of labor used in producing goods.