The individual variable coefficient's multicollinearity leads to ___________?
Correct answer: A. increase in standard error
- A. increase in standard error
- B. increase in variance error
- C. decrease in variance
- D. decrease in standard error
Explanation
Multicollinearity makes it difficult to separate the effects of correlated independent variables, so the variance of their estimated coefficients rises. Because standard error is the square root of variance, it also increases.
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Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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