______ Deals with the Extent to Which the Data Collected

question 55

Multiple Choice

______ deals with the extent to which the data collected accurately measure what they purport to measure.

• A) Reliability
• B) Accuracy
• C) Precision
• D) Validity

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Definitions:

Calculating Ratios

The process of determining the relationship between two or more financial figures, used to assess the financial health, performance, and efficiency of an entity.

Gross Profit

The financial metric reflecting the difference between the revenue and the cost of goods sold (COGS), indicating how much the company earns from its core operations.

Cost Of Goods Sold

Cost of goods sold (COGS) is the direct cost attributed to the production of the goods sold by a business, including materials and labor.

Operating Expenses

Costs associated with the day-to-day operations of a business, including rent, utilities, and salaries.