A Friend of Yours Is Trying to Develop an Index

question 34

Multiple Choice

A friend of yours is trying to develop an index to reproduce respondents' patterns of responses. You tell your friend:

• A)to construct a Guttman scale.
• B)to construct a Likert scale.
• C)to construct a Thurstone scale.
• D)to construct any one of the above.
• E)it cannot be done.

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Definitions:

Absorption Costing

An accounting method that captures all of the manufacturing costs (both fixed and variable) in the cost of a product.

Variable Costing

A costing method in which only variable production costs are assigned to inventory and cost of goods sold, excluding fixed manufacturing overhead.

Absorption Costing

A method of product costing that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead.

Unit Product Cost

The total cost incurred to produce, store, and sell one unit of a product, including direct materials, labor, and overhead.