Which Is TRUE of Item-Characteristic Curves

question 128

Multiple Choice

Which is TRUE of item-characteristic curves?

• A) They determine which items are fair.
• B) They may be used as an aid in assessing whether or not items are biased.
• C) They determine which items are most reliable under specified conditions.
• D) They may be used as an aid in determining the kurtosis of a distribution of test scores.

---

Definitions:

Retail Inventory Method

An accounting method used by retailers to estimate inventory cost by using a consistent markup and grouping similar items.

Cost-To-Retail Ratio

A calculation used in inventory accounting that helps determine the ending inventory value under the retail inventory method, comparing the cost of goods to their retail price.

Ending Inventory

The worth of items available for selling when an accounting period ends, determined by adding the starting inventory to purchases and then subtracting the cost of goods sold.

Lower Of Cost

An accounting principle that dictates that inventory and other assets should be reported at the lower of their historical purchase cost or current market value.