Which of the Following Would Not Reduce Gaming of Report

question 10

Multiple Choice

Which of the following would not reduce gaming of report cards?

• A)Reporting scores using simple graphics
• B)Using simple composite scores
• C)Making firms pay for report card results
• D)Measure quality at the most aggregate level
• E)Risk adjust report card scores

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Definitions:

Predetermined Overhead Rate

This is a rate calculated before the accounting period begins, used to allocate manufacturing overhead costs to products.

Machine-Hours

A measure of the amount of time machinery is in operation, commonly used as a basis for allocating machine related costs to products.

Manufacturing Overhead

All indirect costs associated with the production process, including equipment maintenance, utilities, and factory management salaries.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, based on a planned level of activity.