One Answer to the Problem of Using a Single Cost

question 4

True/False

One answer to the problem of using a single cost driver to allocate support activity costs is to use a dual-rate allocation.

---

Definitions:

Nominal Data

Data classified into categories that cannot be ordered in a meaningful way, used in qualitative analysis.

Chi-squared Goodness-of-fit

A statistical test that measures how well observed data fit an expected distribution in categorical data.

Contingency Table

A Contingency Table is a type of table in a matrix format that displays the frequency distribution of the variables. It's used in statistics to analyze the association between two or more variables.

Nominal Data

Data classified into categories that cannot be ordered in any meaningful way.