Which of the Following Techniques Is a Good Way of Assessing

question 3

Multiple Choice

Which of the following techniques is a good way of assessing whether two variables are related to each other?

• A) Calculating variance
• B) Calculating covariance
• C) Calculating correlation
• D) Calculating standard deviation

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Definitions:

Administrative Expenses

Costs related to the general management and administration of an organization, such as salaries of executive officers and costs of legal services.

Net Operating Income

The profit a company makes from its usual business operations, before taxes and interest, calculated by subtracting operating expenses from revenue.

Machine-Hours

A measure of production time used in cost accounting that quantifies the hours a machine is operated.

Variable Overhead

Variable overhead refers to costs that fluctuate with production levels, such as utilities or materials used in production that can vary with output.