Which of the Following Is True

question 26

Multiple Choice

Which of the following is true?

• A)In developing a standard cost for direct materials, a price factor and a quantity factor must be considered.
• B)A direct labour price standard is frequently called the direct labour efficiency standard.
• C)The standard predetermined overhead rate must be based on direct labour hours as the standard activity index.
• D)The direct materials price standard should be based on the production department's best estimate of the cost of raw material.

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Definitions:

Alternative Hypothesis

The Alternative Hypothesis is the hypothesis that there is a significant difference or effect, opposed to the null hypothesis in statistical testing.

Inferential Statistics

A branch of statistics that allows for making predictions or inferences about a population based on a sample of data.

Mutually Exclusive

Events that cannot occur simultaneously, indicating that the happening of one precludes the occurrence of the other.

Hypothesis Testing

A statistical method to decide whether to accept or reject a hypothesis based on sample data.