When Estimating the Cost Function for Each Cost Pool, the Manager

question 26

True/False

When estimating the cost function for each cost pool, the manager must pay careful attention to the cost hierarchy because the cost pool may have more than one cost driver from different levels of the cost hierarchy.

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Definitions:

Frequency Polygon

A graphical representation of the distribution of a dataset. It shows the frequencies of classes or intervals of data as points, which are connected by line segments.

Class Interval

A range of values used in the grouping of a set of data points in a frequency distribution.

Class Interval

A range of values in a dataset that are divided into continuous segments for the purpose of frequency distribution analysis.

Class Interval

A class interval refers to a range in data that groups values within specified upper and lower boundaries in a frequency distribution.