Which Measure of Central Location Is Used to Determine an Average

question 71

Multiple Choice

Which measure of central location is used to determine an average annual percent increase?

• A)Arithmetic mean
• B)Weighted mean
• C)Mode
• D)Geometric mean

---

Definitions:

Machine Hour

A measure of the amount of time a machine is operated, used in allocating manufacturing costs to products based on the number of hours the machines are used in production.

Normal Capacity

The average level of production or activity that a company can expect to achieve under normal conditions over a period.

Controllable Variance

The portion of variance in cost or revenue that can be directly managed or influenced by actions of the management.

Standard Factory Overhead Rate

A predetermined rate used to allocate expected overhead costs to individual units of product based on a standard cost system.