Variables Measured at the Ordinal Level Do NOT Rank or Order

question 27

True/False

Variables measured at the ordinal level do NOT rank or order data.

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Definitions:

Direct Materials

Direct materials are the raw materials that are directly traceable and integral to the finished product in the manufacturing process.

Variable Manuf. Overhead

Costs of manufacturing overhead that vary with the level of production activity.

Labour Rate Variance

The difference between the actual cost of labor and the budgeted or standard cost of labor.

Standard Labour Rate

The predetermined cost associated with labor per unit of time, used as a benchmark for budgeting and cost control.