The Most Appropriate Basis for Allocating the Factory Building Rent

question 68

Multiple Choice

The most appropriate basis for allocating the factory building rent to specific departments would be the:

• A)Number of machines in each department.
• B)Number of employees in each department.
• C)Square footage of each department.
• D)Amount of time the plant manager spends in the department.

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Definitions:

Relative Position

Refers to the location or ranking of a value in relation to other values within a data set.

Interquartile Range

A measure of statistical dispersion, representing the difference between the 25th (lower quartile) and 75th (upper quartile) percentiles of the data.

Percentile Rank

A score indicating the percentage of scores in a distribution that a particular score is equal to or higher than.

Cumulative Distribution

A method of converting a frequency distribution of scores into increasing percentages as a function of the percentage of scores counted. A bar graph is often generated by placing the class interval scores along the x-axis and the cumulative percentages along the y-axis.