TABLE 1-1 The Manager of the Customer Service Division of a Major

question 25

Multiple Choice

TABLE 1-1
The manager of the customer service division of a major consumer electronics company is interested in determining whether the customers who have purchased a DVD player made by the company over the past 12 months are satisfied with their products.
-Referring to Table 1-1, the possible responses to the question "Are you happy, indifferent, or unhappy with the performance per dollar spent on the DVD player?" result in

• A) a nominal scale variable.
• B) an ordinal scale variable.
• C) an interval scale variable.
• D) a ratio scale variable.

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Definitions:

Variable Costing

A pricing strategy that incorporates solely the variable costs associated with production—such as direct materials, direct labor, and variable manufacturing overhead—into the cost of goods sold, while omitting fixed overhead expenses.

Absorption Costing

A method of accounting that incorporates all costs associated with manufacturing, including direct materials, direct labor, as well as both variable and fixed overhead expenses, into the product's cost.

Variable Costing

A costing method that includes only variable manufacturing costs—direct labor, direct materials, and variable manufacturing overhead—in unit product cost.

Net Incomes

The total earnings of a company after all expenses, taxes, and costs have been deducted from total revenue.