Which of the Following Statements Is NOT True

question 1

Multiple Choice

Which of the following statements is NOT true?

• A)In selecting an independent variable for cost behaviour analysis,it is important to determine the activity that causes the cost being analyzed to occur.
• B)Professional judgment is very important in selecting an activity measure for a particular cost.
• C)A low correlation between two variables proves that one causes the other.
• D)The least-squares cost estimation method can be used to measure the linear function.

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Definitions:

Competitive Forces

The external factors that influence the competitive position of a firm in an industry or market.

Interdependent

A situation where entities or individuals depend on each other, often seen in economic and social settings.

Oligopoly

A market structure in which a few firms dominate the market, leading to a high level of market concentration.

Oligopolistic Industry

A market structure characterized by a small number of firms whose decisions affect and are affected by each other, leading to strategic behavior and interdependence.