DrLen Wants to Determine Whether or Not Dextrin Causes People

question 6

Multiple Choice

Dr.Len wants to determine whether or not dextrin causes people to lose weight.He gives 10 subjects dextrin and 10 subjects a placebo.He measures their weight every day (since weight seems to fluctuate daily) until the experiment is discontinued (after 4 weeks) .In Dr.Len's study what are some disadvantages with using this particular design?

• A)significant amount of variance in subjects occurs
• B)carry-over effects
• C)a large subject pool is needed
• D)Both a & c
• E)All of these

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Definitions:

Cost Pool

A collection of indirect costs grouped together based on similar cost drivers for the purpose of allocation to products, services, or departments.

Activity-Based Costing

A costing methodology that assigns costs to products and services based on the activities and resources that go into producing them.

Overhead Cost Per Unit

The indirect manufacturing costs allocated to each unit of product produced.

Departmental Overhead Rate

A rate used to allocate overhead costs to specific departments, calculated based on the relationship between indirect costs and activity level.