Face Validity Is a Form of Empirical Validity

question 22

True/False

Face validity is a form of empirical validity.

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Definitions:

Allocation Base

A criterion or measure used for distributing overhead costs among various products, services, or departments within a business.

Traditional Costing

A costing method that allocates overhead based on a single predetermined rate, usually ignoring the varying demands different products place on resources.

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.