Which Type of Scale Simply Ranks Observations

question 5

Multiple Choice

Which type of scale simply ranks observations?

• A) nominal
• B) ordinal
• C) interval
• D) ratio

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Definitions:

Materials Price Standard

The predetermined cost of materials that should be incurred under efficient operating conditions.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate estimated overhead costs to products or services based on a chosen activity base.

Standard Activity Index

A benchmark used to measure the amount of activity, productivity, or performance in a given scenario, often compared to an industry standard.

Budgeted Overhead Costs

The estimated costs related to the indirect aspects of manufacturing or service delivery that are planned for a specific period.