In a Multiple Regression Mode, If the Largest Variance Inflation

question 67

True/False

In a multiple regression mode, if the largest variance inflation factor (VIF) is 21.6, then it can be concluded that there are indications of multicollinearity.

---

Definitions:

Total Overhead Variance

The difference between the actual overhead costs incurred and the overhead costs that were applied or allocated based on standard costing procedures.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the quantity that should have been used, valued at the standard cost.

Direct Material

The raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the production cost.

Total Variance

The difference between the actual costs incurred and the standard costs, summarizing all variances in cost accounting to analyze overall performance.