Determine Whether the Source of Error Represents Random or Systematic

question 231

Multiple Choice

Determine whether the source of error represents random or systematic error.
-Anne counts the number of cars passing an intersection in a 15-minute period. Sometimes she makes errors in counting.

• A)Systematic error
• B)Random error

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead costs incurred and the standard variable overhead expenses expected for the actual level of production activity.

January

January is the first month of the year in the Gregorian calendar, often associated with new beginnings and resolutions.

Variable Overhead Efficiency Variance

The difference between the standard cost of variable overheads based on expected efficiency and the actual variable overheads incurred.

Month

A unit of time, approximately 1/12th of a year, based on the Gregorian calendar.