Examlex
To test the validity of a selection test for advanced widget designers,Techspark Inc.administers the test to its current widget designers.The test results are then compared with the employees' latest performance appraisal scores.In this instance,what type of validation is being used by Techspark?
Labor Efficiency Variance
The deviation between the actual hours taken to produce a unit of output and the standard hours expected, multiplied by the standard labor rate.
Materials Price Variance
The difference between the actual cost of direct materials and the expected cost at standard prices.
Materials Quantity Variance
The difference between the actual amount of materials used in production and the standard amount expected, multiplied by the standard cost per unit.
Materials Price Variance
The difference between the actual cost of materials purchased and the standard cost, multiplied by the quantity of materials purchased.
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