Numbers Assigned to Ranks on an Ordinal Scale Can Legitimately

question 47

True/False

Numbers assigned to ranks on an ordinal scale can legitimately be added,multiplied,subtracted,and divided.

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Definitions:

Absorption Costing

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

Contribution Format

A financial statement layout that separates fixed costs from variable costs to highlight the contribution margin of a business.

Absorption Costing

A financial tracking method that brings together all costs of production—direct materials, direct labor, and all overhead, both variable and fixed—inclusion in the price of a product.

Variable Costing

An accounting method that includes only variable production costs (materials, labor, and overhead) in product costs.