Exhibit 9-4: Following Is a List of Testing Practices

question 46

Multiple Choice

Exhibit 9-4: Following is a list of testing practices.Assuming other things are equal, indicate whether the practice would lower reliability, raise reliability, or neither.
-Refer to Exhibit 9-4.Adding 10 items to the test that everyone answers correctly.

• A) lower reliability
• B) raise reliability
• C) neither raise nor lower reliability

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Definitions:

Standard Quantity

The predetermined or expected amount of materials required to complete one unit of a product, used for budgeting and costing purposes.

Standard Price

The predetermined cost that a company expects to pay for goods and services; used in budgeting and cost control.

Actual Materials

The real quantity and cost of materials used in the production process, as opposed to estimated or standard materials.

Material Price Variance

The difference between the actual cost of direct materials used in production and the standard cost of those materials.