If Two Variables B and V Are Positively Correlated, B

question 17

Multiple Choice

If two variables B and V are positively correlated, B ________ when V ________.

• A)goes up; goes down
• B)goes up; goes up
• C)goes down; goes up
• D)remains unchanged; goes up

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Definitions:

Favorable

A term used in accounting to describe a situation where actual costs are less than the budgeted or standard costs.

Unfavorable

A term used in variance analysis to describe a variance that leads to a decrease in profit compared to budgeted or standard costs.

Fixed Manufacturing Overhead

The portion of total manufacturing overhead costs that does not vary with the level of production or output.

Budget Variance

The difference between budgeted and actual figures for revenues or costs, indicating the degree of control over business operations.