In Order to Be Useful, a Test Must Be Valid

question 357

Multiple Choice

In order to be useful, a test must be valid, that is, it must:

• A) produce the same results from one time to the next.
• B) produce comparable results when alternate forms are given.
• C) compare results against established standards of performance.
• D) measure what it is designed to measure.

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Definitions:

Standard Costs

Predetermined costs to manufacture a single unit or a number of units of a product during a specific period under expected or normal conditions.

Materials Quantity Variances

The difference between the actual quantity of materials used in production and the expected quantity, measured in cost.

World Class Company

A business that achieves high standards in its operations, services, and products, often excelling in areas like customer satisfaction, innovation, and efficiency, and recognized globally for its excellence.

Standard Cost Accounting System

A cost accounting system that assigns preset costs to products or services, used for budgeting and controlling expenses.