How Close a Measured Value Is to the Actual (True)value

question 13

Multiple Choice

How close a measured value is to the actual (true) value is called:

• A) accuracy.
• B) precision.
• C) analytic sensitivity.
• D) analytic specificity.

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Definitions:

Automated Shaper

A machine tool that uses computer control to shape or cut materials with precision, often used in manufacturing.

Gross Margin

The difference between sales revenue and the cost of goods sold before deduction of selling, general, and administrative expenses.

Job-Order Costing

A costing method that accumulates costs based on individual jobs or orders, suitable for businesses producing unique or custom products.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to individual jobs or products based on a consistent basis such as labor hours or machine hours.