To Avoid the Problem of Not Having Access to Tables

question 44

Multiple Choice

To avoid the problem of not having access to tables of the F distribution when a one-tailed test is required and with F values given for the lower tail, let​ the

• A) smaller sample variance be the numerator of the test statistic.
• B) larger sample variance be the numerator of the test statistic.
• C) sample variance from the population with the smaller hypothesized variance be the numerator of the test statistic.
• D) sample variance from the population with the larger hypothesized variance be the numerator of the test statistic.

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Definitions:

Variable Overhead Spending Variance

The difference between the actual variable overhead costs incurred and the expected costs based on standard costs.

Direct Labour Hour

The amount of time spent by workers directly manufacturing a product, which is used as a basis for allocating production costs in cost accounting.

Static Budget

A budget based on a set level of activity or volume that does not adjust over the period for actual activity levels.

Standard Cost

A pre-determined estimate of the cost to produce a single unit or a number of units during a specific period.