The Scale of Measurement That Has an Inherent Zero Value

question 56

Multiple Choice

The scale of measurement that has an inherent zero value defined is the

• A)ratio scale
• B)nominal scale
• C)ordinal scale
• D)interval scale

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Definitions:

Variable Overhead Efficiency Variance

The difference between actual variable overhead based on the standard hours allowed for the actual output and the actual variable overhead incurred.

Standard Machine-Hours

An accounting measure used to allocate manufacturing overhead costs to products based on the number of hours machines are expected to operate.

Variable Overhead Rate Variance

The difference between the expected (standard) cost of the variable overhead based on the actual production volume and the actual variable overhead incurred.

Standard Machine-Hours

A predetermined amount of time that a machine is expected to operate to meet production requirements.