An R² of 0.80 Means

question 9

Multiple Choice

An R² of 0.80 means

• A)80% of the variability in the independent variable is explained by the dependent variable
• B)80% of the variability in the dependent variable is explained by the independent variable
• C)80% of the variability in the dependent variable is not explained by the independent variable
• D)Multiple regression was used

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Definitions:

Cost Allocation

The process of distributing or assigning indirect costs to different departments, products, or projects.

Reciprocal Method

An approach in cost accounting used to allocate service department costs to production departments, considering the mutual services exchanged between service departments.

Reciprocal Services

Refers to the mutual exchange of services between departments within an organization to support each other's operations.

Direct Method

A costing method that directly allocates service department costs to producing departments without considering services provided between service departments.