The Best Way to Establish _____ Is to Account for Competing

question 23

Multiple Choice

The best way to establish _____ is to account for competing explanations, either statistically or through control groups.

• A)causation
• B)profitability
• C)correlation coefficient
• D)internal alignment

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Definitions:

Spending Variance

The difference between the actual amount spent and the budgeted or planned amount for a particular period or category.

Net Operating Income

Net Operating Income is the total revenue from operations minus operating expenses, excluding taxes and interest. It highlights a company's operational efficiency.

Revenue And Spending Variances

The differences between budgeted and actual figures for revenue and expenditures, used in budgetary control and financial analysis.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, often used to compare with actual results to assess performance.