The Purpose of Factor Analysis Can Be Best Described As

question 15

Multiple Choice

The purpose of factor analysis can be best described as:

• A)data simplification by summarizing the information contained in a large number of variables into summary measures.
• B)presenting the relationship between multiple categorical measures in a low-dimensional diagram.
• C)assessing the significance of group differences across many metric dependent variables simultaneously.
• D)assessing the degree of correlation of a group of categorical measures.

---

Definitions:

Administrative Expense

Costs related to the general management and administration of an organization, such as salaries of executives and office supplies.

Period Cost

Overheads not associated with the production activities, expensed in the timeframe they arise, like sales, general, and administrative outlays.

President's Salary

The compensation awarded to the president of a company, reflecting the level of responsibility and the size and profitability of the company.

Product Cost

The total cost attributed to the production of goods or services, including direct materials, direct labor, and manufacturing overhead.