Which of the Following Statements Is Correct

question 133

Multiple Choice

Which of the following statements is correct?

• A) When a line slopes downwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related.
• B) When a line slopes upwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related.
• C) The higher the temperature, the more ice cream people consume. Thus the temperature and ice cream consumption are inversely related.
• D) If two variables are directly related, a graph of the two variables has a negative slope.
• E) None of the above statements is correct.

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Definitions:

Direct Labor-hour

A measure of the amount of time spent by workers directly involved in the production process to manufacture a product.

High-low Method

An approach in cost accounting to determine variable and fixed charges, based on analyzing the activity's minimum and maximum levels.

Job-Order Costing

A costing system used in situations where many different products, jobs, or services are produced each period.

Process Costing

A costing method used when essentially homogeneous products are produced on a continuous basis.