Which of the Following Is Not True About the Cause-And-Effect

Multiple Choice

Which of the following is not true about the cause-and-effect criterion when estimating a cost function?

A) Correlation of variables proves cause-and-effect
B) Managers must be careful not to equate high correlation between two variables to mean that either variable causes the other
C) Knowledge of operations can help managers discover cause-and-effect relationships
D) Contractual arrangements may show a direct cause and effect between two variables