Systematic Error Describes Measurement Error That Arises from Arbitrary Changes

question 66

True/False

Systematic error describes measurement error that arises from arbitrary changes that have a different effect each time the measurement is made.

---

Definitions:

Net Operating Income

Earnings before interest and taxes (EBIT), a measure of a company's profitability from operations.

Minimum Required Return

The minimum return that investors expect to earn from their investment.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity allowed for the actual output, multiplied by the standard price per unit of materials.

Materials Price Variance

The difference between the actual unit price paid for an item and the standard price, multiplied by the quantity purchased.