Exhibit 9-3: Choose the Type of Evidence (A-C) That Would

question 133

Multiple Choice

Exhibit 9-3: Choose the type of evidence (a-c) that would be of primary importance for the validity of the following tests.
-Refer to Exhibit 9-3.A quantitative aptitude test used for screening applicants for admission to the School of Engineering.

• A) evidence based on content
• B) evidence supporting construct
• C) evidence based on relationship to other variables

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Definitions:

Machine-Hours

An allocation base in cost accounting used to assign costs to products or services, based on the hours of machine operation required.

Fixed Manufacturing Overhead

Consists of manufacturing costs that do not change with the level of production, such as salaries of supervisors and rent for factory premises.

Denominator Level

The level of activity used to compute the fixed manufacturing overhead rate in absorption costing, affecting inventory and cost of goods sold.

Budget Variance

The difference between budgeted amounts and actual amounts spent or received.