Testing the Validity of a Composite Measure by Using Another

question 23

Multiple Choice

Testing the validity of a composite measure by using another, proven indicator is known as:

• A)external validation.
• B)internal validation.
• C)index scoring.
• D)Thurstone scaling.
• E)face validation.

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Definitions:

LIFO Method

Last-In, First-Out Method is an inventory valuation method where the most recently produced or purchased items are recorded as sold first, while older stock remains in inventory.

FIFO Inventory

An approach to managing stock whereby the oldest inventory items are sold first, adhering to the First In, First Out principle.

Income Taxes

Taxes levied by the government on income generated by businesses and individuals within its jurisdiction.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as materials and labor.