Ordinal Level Measures Are Best Used When the Measurement Goal

question 48

Multiple Choice

Ordinal level measures are best used when the measurement goal is to ________ .

• A)determine averages
• B)put things in order
• C)classify
• D)determine the distance between measured objects

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Definitions:

Overhead Costs

Expenses not directly attributable to the production of goods or services, such as rent, utilities, and administration.

Flexible Budgets

A budget that adjusts or flexes with changes in volume or activity, allowing for a more accurate comparison of actual spending with budgeted amounts for different levels of activity.

Actual Overhead

The real costs incurred for indirect materials, labor, and expenses in operating a business.

Budgeted Manufacturing

The process of estimating the costs of production for a specific period, including materials, labor, and overhead.