What Does a Correlation Tell Us

question 165

Multiple Choice

What does a correlation tell us?

• A) the order in which variables occur
• B) which variables influence other variables
• C) what causes change in a variable
• D) the relationship and strength of relationship between two or more variables

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Definitions:

Variable Overhead

Indirect manufacturing costs that vary with the level of production activity, such as utilities for the manufacturing plant.

Direct Labor-hours

The total hours worked by employees directly involved in manufacturing a product, often used as a basis for allocating labor costs to products.

Raw Material

Basic substances in their natural, modified, or semi-processed states used as inputs for production processes to manufacture finished goods.

Materials Price Variance

The deviation between the actual and standard cost of materials used in production.