Amelia Was Very Excited When She Was Called in for an Interview

question 49

Multiple Choice

Amelia was very excited when she was called in for an interview for a teller position with the local bank. As a part of the interview process, she was required to take the MMPI. She wonders why the bank would require her to take the test as a condition of employment. You are a psychology major. What do you tell Amelia about the use of the MMPI in employment settings?

• A) It is used often by employers as a hiring tool.
• B) It can accurately predict the type of reward system an employee expects.
• C) It can accurately predict the minimum salary expectations of an employee.
• D) It is used to determine intellectual ability levels, especially in terms of problem-solving.

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Definitions:

Predetermined Overhead Rate

An estimated rate used to assign manufacturing overhead costs to individual units of production, based on a chosen activity base.

Denominator Level

In cost accounting, it refers to the standard quantity or activity used in calculating the predetermined overhead rate.

Variable Overhead Rate

The rate at which variable overhead costs are allocated to products, changing with the level of production.

Efficiency Variance

A measure in cost accounting that calculates the difference between the actual quantity of input used and the standard amount expected to be used, multiplied by the standard price.