The Managers of HRY Corporation Are Analyzing Some of Their

question 106

Multiple Choice

The managers of HRY Corporation are analyzing some of their corporate costs to determine the costs of each department's use of administrative services. The accountant wants to allocate the costs of payroll processing using an activity-based costing system. The most appropriate cost driver for the payroll processing cost pool is the:

• A) Number of pay periods per month
• B) Number of employees
• C) Average hourly wage for all employees
• D) Maximum number of deductions from an individual employee's paycheque

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Definitions:

Correlation Coefficient

A statistical measure ranging from -1 to 1 that indicates the strength and direction of the linear relationship between two variables.

Scatterplot

A graphical representation of individual data points plotted on a two-dimensional plane, often used to observe and analyze the relationship between two variables.

Least Squares Regression Line

A straight line that best fits the data on a scatter plot, minimizing the sum of the squares of the vertical distances of the points from the line.

Side-by-Side Bar Chart

A graphical display for comparing the frequency, count, or proportion of categories across different groups.