Xavier Designs a Measure That Has Two Response Options, Either

question 167

Multiple Choice

Xavier designs a measure that has two response options, either "yes" or "no." When he analyzes his data he is likely to find that:

• A) his measure lacks sensitivity.
• B) his measure is overly sensitive.
• C) his measure has the optimum sensitivity.
• D) his measurement is vulnerable to too much observer bias.

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Definitions:

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated before the period begins based on estimated costs.

Machine-Hours

A measure of the amount of time that a machine is operated, used as a basis for allocating manufacturing overhead.

Variable Manufacturing Overhead

The portion of overhead costs that varies with production volume, including utilities and indirect labor expenses related to manufacturing.

Fixed Manufacturing Overhead

Costs in manufacturing that do not vary with the level of production output, such as salaries of managers and depreciation of factory equipment.