The More Scale Points, the Lesser the Discriminatory Power of the Scale

question 6

True/False

The more scale points, the lesser the discriminatory power of the scale.

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Definitions:

Planning Budget

A budget developed for various levels of activity, forecasting revenue and expense figures based on different production or sales volumes.

Net Operating Income

The profit a company generates from its regular business activities, excluding deductions for interest and taxes.

Units

A measurement or quantity of something considered as a standard measure, in business often referring to a single item of a product.

Planning Budget

A budget prepared for a particular level of activity, often used as a benchmark for evaluating actual performance.