If the Correlation Coefficient (R) = 1.00, Then

question 73

Multiple Choice

If the correlation coefficient (r) = 1.00, then

• A) the Y-intercept (b₀) must equal 0.
• B) the explained variation equals the unexplained variation.
• C) there is no unexplained variation.
• D) there is no explained variation.

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Definitions:

First-In, First-Out Method

An inventory valuation method that assumes the first items placed in inventory are the first sold; useful in managing and valuing inventory.

Conversion Costs

The combined costs of direct labor and manufacturing overheads required to convert raw materials into finished goods.

Equivalent Units

A concept in cost accounting used to calculate the cost of partially completed goods by converting them into a number of fully completed units.

Conversion Cost

The sum of labor and overhead expenditures incurred to convert raw materials into finished goods.