Rejecting the Null Hypothesis When It Is False Is a Decision

question 8

True/False

Rejecting the null hypothesis when it is false is a decision error.

---

Definitions:

Overhead Rate

The total of indirect costs of production compared to a base activity measure, like labor hours, used to assign costs to products.

Manufacturing Overhead

These are indirect factory-related costs that are incurred when producing a product, such as utility costs, depreciation, and salaries of supervisors.

Direct Labor-Hours

Direct labor-hours refer to the total hours worked by employees directly involved in the production process.

Traditional Costing

An accounting method that applies indirect costs to products based on a predetermined overhead rate.