In Testing a Hypothesis Using the χ² Test, the Theoretical

question 89

Multiple Choice

In testing a hypothesis using the χ² test, the theoretical frequencies are based on the

• A) null hypothesis.
• B) alternative hypothesis.
• C) normal distribution.
• D) none of the above

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Definitions:

Variances

Differences between planned or standard costs and actual costs, analyzed to understand and manage costs within financial planning.

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected (or standard) cost of those materials.

Variable Overhead

Costs that vary with production volume but are not directly tied to specific production units, such as utilities for the manufacturing plant.

Direct Labor-Hours

The total hours worked by employees that are directly involved in the manufacturing process or providing a service, used in costing and operational efficiency analyses.