A Bathroom Scale Cannot Detect the Difference in Weights Between

question 156

Multiple Choice

A bathroom scale cannot detect the difference in weights between Jorge and Carlos,because the two men only differ by 1 kilogram.As a measure of weight,the scale is limited in terms of its:

• A)reliability.
• B)validity.
• C)consistency.
• D)power.

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Definitions:

Operating Income

Earnings from a company's primary business activities, excluding revenues and expenses from investments or other non-operational sources.

Variable Costing

An accounting method that only allocates variable costs to inventory, treating fixed costs as expenses of the period.

Absorption Costing

A method of costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Operating Income

Operating income is the profit realized from a company's regular business operations, excluding deductions of interest and taxes, as well as any gains or losses from non-operating activities.