Situation in which two or more independent variables are highly correlated is known as
A. price linearity
B. cost linearity
C. division linearity
D. multi-collinearity
Answer: Option D
Solution(By Examveda Team)
Situation in which two or more independent variables are highly correlated is known as multi-collinearity. Multicollinearity is the occurrence of high intercorrelations among independent variables in a multiple regression model.Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
Join The Discussion