Regression Analysis Is Used for Prediction,while Correlation Analysis Is Used

question 147

True/False

Regression analysis is used for prediction,while correlation analysis is used to measure the strength of the association between two numerical variables.

---

Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing more accurate budgeting and variance analysis.

Relevant Range

The range of activity within which assumptions about variable and fixed cost behavior are valid.

Variable Cost

Costs that vary directly with the level of production output or volume, such as raw materials and direct labor.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours worked, multiplied by the standard labor rate.