Which of the Following Is NOT an Extraneous Variable

question 10

Multiple Choice

Which of the following is NOT an extraneous variable?

• A) maturation
• B) statistical regression
• C) testing effects
• D) selection bias
• E) All of the above are extraneous variables.

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Definitions:

Direct Labor-Hours

The total number of labor hours spent on the production of goods or services.

Predetermined Overhead Rate

A rate calculated at the beginning of a period, based on the estimated overhead costs and estimated level of activity, used to apply overhead costs to products.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the actual consumption of resources.

Traditional System

A cost accounting system that allocates overhead based on a single or few measures of activity, such as direct labor hours or machine hours.