A Correlation Coefficient of _____ Indicates That the Variables Form

question 13

Multiple Choice

A correlation coefficient of _____ indicates that the variables form a perfect linear relationship.

• A)+1.00
• B)-1.00
• C)0.00
• D)both +1.00 and -1.00

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Definitions:

Variable Cost

A cost that changes in proportion to the level of activity or volume of output.

Wages And Salaries

Compensation paid to employees for their labor, with wages typically being hourly rates and salaries being fixed annual amounts.

Activity Variance

The difference between the budgeted amount of activity and the actual amount of activity, which can impact costs and operational efficiency.

Cost Formula

An equation used to predict costs at various levels of activity, incorporating both fixed and variable cost components.