NARRBEGIN: Home Care Home Care

question 75

Multiple Choice

NARRBEGIN: Home Care
Home Care
Data are collected on the number of house calls (x) made in a given week by each of 60 nurses in a certain hospital. The same data set is displayed in each of the three histograms below. NARREND
-Compare the two histograms below. Which statement is true?

• A)The spread of histogram A is smaller than the spread of histogram B.
• B)The spread of histogram A is larger than the spread of histogram B.
• C)The spread of histogram A is the same as the spread of histogram B.
• D)You cannot compare the spreads of these two histograms without the original data.

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Definitions:

Cost Drivers

Factors that cause a change in the cost of an activity, impacting the economic amount associated with production or delivery of a service.

Variable Costs

Costs that vary in direct proportion to changes in production or sales volumes, such as raw materials and direct labor.

Fixed Costs

Costs that do not change with the level of output or production, such as rent, salaries, and insurance.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or job orders, calculated based on estimated overhead costs and an allocation base at the beginning of a period.