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Iris Company Is in the Process of Evaluating Allocation Bases

question 37

Multiple Choice

Iris Company is in the process of evaluating allocation bases so that selected costs can be charged to responsibility centres. Would the number of employees likely be a good base to use to allocate the costs of Human Resources, Building and Grounds, and Repairs and Maintenance to user centres respectively?  Human  Resources  Buildings and  Grounds  Repairs and  Maintenance 1 Yes  Yes  Yes 2 Yes  No  Yes 3 Yes  No  No 4 No  Yes  Yes 5 No  Yes  No \begin{array} { | l | c | c | c | } \hline & \begin{array} { c } \text { Human } \\\text { Resources }\end{array} & \begin{array} { c } \text { Buildings and } \\\text { Grounds }\end{array} & \begin{array} { c } \text { Repairs and } \\\text { Maintenance }\end{array} \\\hline 1 & \text { Yes } & \text { Yes } & \text { Yes } \\\hline 2 & \text { Yes } & \text { No } & \text { Yes } \\\hline 3 & \text { Yes } & \text { No } & \text { No } \\\hline 4 & \text { No } & \text { Yes } & \text { Yes } \\\hline 5 & \text { No } & \text { Yes } & \text { No } \\\hline\end{array}


Definitions:

DSM-5 Diagnosis

The diagnostic process based on criteria outlined in the Fifth Edition of the Diagnostic and Statistical Manual of Mental Disorders, a guideline used by healthcare professionals to diagnose mental disorders.

Face Validity

The degree to which a test or measure appears effective in terms of its stated aims to non-experts.

Unstructured Interview

An interviewing technique where the questions are not prearranged, allowing for a more spontaneous and flexible conversation.

Poor Validity

Refers to a lack of accuracy in measuring what a test or research study is designed to measure, questioning the results' trustworthiness.

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