When the Frequency in Any Cell of a Contingency Table

question 88

Multiple Choice

When the frequency in any cell of a contingency table is low, it is ________.

• A)time to stop the analysis
• B)okay to ignore this and move on to finish the analysis
• C)okay to proceed if the phi coefficient is used
• D)time to increase the size of the table
• E)time to reduce the size of the table by combining categories

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Definitions:

Absorption Costing Income Statement

An income statement where all manufacturing costs, both variable and fixed, are treated as product costs, with non-manufacturing costs treated as period costs.

Variable and Fixed Costs

Variable costs change based on production levels, while fixed costs remain constant regardless of production volume.

Fixed Factory Overhead Costs

Expenses related to the operation of a manufacturing facility that remain constant regardless of the production volume.

Absorption Costing

A method of inventory costing that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.