Which Is a Perfect Correlation

question 14

Multiple Choice

Which is a perfect correlation?

• A) +.75
• B) 0
• C) +.98
• D) -98
• E) +1

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Definitions:

Weighted-Average Method

An inventory costing approach that calculates the cost of goods sold and ending inventory based on the average cost of all items.

Equivalent Units

A concept used in process costing that converts partially completed units into a number of fully completed units, to accurately measure output.

Conversion

In accounting, it refers to the process of changing raw materials into finished products, including the costs associated with such a transformation.

Weighted-Average Method

An inventory costing method that calculates the cost of units for sale during a period by averaging the costs of all similar goods available.