Frequency of Occurrence Can Represent Either of Two Measurement Scales

question 44

Multiple Choice

Frequency of occurrence can represent either of two measurement scales depending upon whether only a single observation of each person is made or several observations of the same individual are made.Frequency of occurrence can represent either

• A)nominal or ordinal scales.
• B)nominal or ratio scales.
• C)ordinal or interval scales.
• D)interval or ratio scales.

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Definitions:

Relevant Range

The range of activity within which the assumptions about fixed and variable cost behavior are valid.

High-low Method

A way to estimate the cost-behavior formula that uses the highest and lowest levels of activity to determine fixed and variable costs.

Activity Index

A measure or indicator used to gauge activity levels within a particular domain, such as manufacturing or stock trading volume.

Process Cost System

A cost accounting system used when a company manufactures a large volume of similar products.