Which Pair of Variables Should Produce a Negative Relationship

question 14

Multiple Choice

Which pair of variables should produce a negative relationship?

• A) Square footage of a house and price of a house
• B) Number of years of schooling and annual income
• C) Age of child and verbal skill level
• D) Speed of running and time to complete a race

---

Definitions:

Manufacturing Overhead

Consists of all manufacturing costs that are not directly associated with the production of goods, including indirect labor, maintenance, and factory utilities.

Direct Labor-Hours

The compiled working hours of employees directly active in manufacturing tasks.

Activity-Based Costing

A method of allocating overhead and indirect costs to specific products or projects based on their consumption of resources.

Predetermined Overhead Rate

A rate calculated at the beginning of an accounting period, used to allocate overhead costs to products or job orders based on a certain activity.