Which Sources of Error Contribute to Inconsistent Measurement

question 5

Multiple Choice

Which sources of error contribute to inconsistent measurement?

• A) Random individual differences
• B) Lack of instrument clarity
• C) Errors in data processing
• D) All of these sources of error threaten measurement reliability.

Assess the effect of activity level changes on total costs, net income, and cost per unit.

Estimate expected costs based on historical data using linear cost behavior assumptions.

Understand how to apply the high-low method to determine variable and fixed cost components.

Identify the nature of costs (fixed, variable, mixed, and step-variable) and their behaviors within relevant range.

---

Definitions:

Job-Order Costing

A cost accounting system that collects costs individually for each job, suitable for customized orders or distinctly identifiable products.

Overapplied Overhead

A situation where the overhead allocated to products or services is more than the actual overhead incurred.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly used to create the goods.

Indirect Materials

Materials used in the production process that cannot be directly traced to the end product, often considered part of manufacturing overhead.