When Data Are Classified by the Type of Measurement Scale

question 46

Multiple Choice

When data are classified by the type of measurement scale, which is the strongest form of measurement?

• A) nominal
• B) interval
• C) ordinal
• D) ratio

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Definitions:

Factory Rent

The cost incurred by a business for leasing a manufacturing facility or space where production activities are carried out.

Factory Overhead

All the supplementary costs tied to manufacturing, aside from the expenses of direct materials and direct labor.

Amortization

The periodic transfer of the cost of an intangible asset to expense.

Direct Labor Used

The total hours worked by employees directly involved in the production process, impacting manufacturing costs.