In Order for a Test to Be Considered Useful, It

question 52

Multiple Choice

In order for a test to be considered useful, it must provide more information than would be known by

• A)the cutting score.
• B)the validity coefficient.
• C)making a decision without a test.
• D)the hit rate alone.

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Definitions:

Plantwide Predetermined Rate

A single overhead rate calculated using the total estimated overhead costs divided by an estimated allocation base for an entire factory or plant.

Machine-Hours

A measure of the time that a machine is in operation, used in costing and operational analysis.

Departmental Predetermined Rates

Overhead allocation rates set in advance for specific departments to allocate indirect costs more accurately.

Markup

An additional amount included in the cost price of products to account for overheads and gain, thereby establishing the price at which they are sold.