The ________ of a Type of Measurement Indicates How Free

question 72

Multiple Choice

The ________ of a type of measurement indicates how free that measurement is from random error.

• A) reliability
• B) validity
• C) generalizability
• D) utility
• E) verifiability

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Definitions:

Controllable Variance

The difference between actual costs and budgeted costs that management has the power to influence or control through decisions and actions.

Variable Factory Overhead

Costs in manufacturing that vary with the level of production output, such as utilities and materials used in the production process.

Controllable Variance

The difference between actual budgeted costs and the controllable costs within a budget period.

Fixed Factory Overhead

Indirect manufacturing costs that remain relatively constant regardless of the level of production, such as rent, depreciation, and salaries of factory supervisors.