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:

Total Dissolution

The complete disbanding and cessation of operations of an organization or partnership, where assets are liquidated and liabilities settled.

Merger

The voluntary fusion of two or more entities into one, usually to gain a competitive edge or achieve higher efficiency.

Self-Examination

The process of introspectively analyzing one's own thoughts, feelings, and actions to gain self-awareness or insight.

Strategic Plan

A document that outlines an organization's strategy for achieving its goals over a specific timeframe, including objectives, action plans, and resource allocation.