A Scatter Diagram

question 131

Multiple Choice

A scatter diagram

• A)is a graph of a theoretical relationship between two variables.
• B)relates cross-sectional data only.
• C)relates time series data only.
• D)plots a series of observations,showing the relationship between two variables.
• E)shows the dependence of one variable on another.

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Definitions:

Proration

The allocation of costs or revenues among departments, products, or periods based on a fair and equitable basis.

Underapplied Overhead

A situation where the allocated overhead costs are less than the actual overhead costs incurred, leading to a cost discrepancy.

Overapplied Overhead

Overapplied overhead occurs when the allocated overhead cost in production exceeds the actual overhead expenses incurred, leading to adjustments in accounting.

Closing Account

The process of preparing accounts for the end of an accounting period, involving transferring temporary account balances to permanent ones.