Which of the Following Statements Is Correct in Relation to Determining

question 36

Multiple Choice

Which of the following statements is correct in relation to determining whether a cost is direct or indirect?

• A) The wider the definition of the cost object, the more costs that will be indirect costs.
• B) The number of cost items that can be classified as direct costs does not depend on the definition of cost objects.
• C) The narrower the definition of the cost object, the more costs that will be direct costs.
• D) The wider the definition of the cost object, the more costs that will be direct costs.

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Definitions:

Spearman Rank

It's a method for assessing rank correlation without assuming any parameter, focusing on how a monotonic function might accurately describe the connection between two variables.

Ordinal Variables

Variables that represent categories with a meaningful order but without a fixed interval between categories, such as rankings or levels of satisfaction.

Pearson's Coefficient

A measure of the linear correlation between two variables, ranging from -1 to 1, where 1 means a perfect positive linear relationship and -1 a perfect negative linear relationship.

Spearman Rank

A rank correlation metric that is non-parametric and evaluates the extent to which two variables' association can be explained through a monotonic function.