Louis Katz, a Cost Accountant at Papalote Plastics, Inc

question 11

Multiple Choice

Louis Katz, a cost accountant at Papalote Plastics, Inc. (PPI) , is analyzing the manufacturing costs of a molded plastic telephone handset produced by PPI. Louis's independent variable is production lot size (in 1,000's of units) , and his dependent variable is the total cost of the lot (in $100's) . Regression analysis of the data yielded the following tables: The correlation coefficient between Louis's variables is ___.

• A) -0.73
• B) 0.73
• C) 0.28
• D) -0.28
• E) 0.00

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Definitions:

Direct Materials

Raw materials that can be directly attributed to the production of specific goods or services.

Production

The process of creating goods or services by combining labor, materials, and technology.

Dollar Amount

The total value of something expressed in dollars.

Sales Revenue

The total amount of money generated from the sale of goods or services by a company before any expenses are deducted.