What Type of Error Occurs When an Applicant Who Is

question 39

Multiple Choice

What type of error occurs when an applicant who is assessed favourably turns out to be a poor choice?

• A) a false negative error
• B) a false positive error
• C) a leniency error
• D) a strictness error

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Definitions:

Fixed Overhead Volume

refers to the portion of fixed overhead costs that is associated with the production volume, used in calculating efficiency and profitability.

Standard Machine-Hours

A measure used in manufacturing to allocate costs to products based on the estimated number of hours the machinery is used.

Actual Output

Actual output is the quantity of finished goods or services produced by a company in a specific period.

Overapplied

A situation in cost accounting where the allocated manufacturing overhead for a period exceeds the actual manufacturing overhead costs incurred.