A Concern with Using Historical Data to Measure Cost Behavior

question 3

True/False

A concern with using historical data to measure cost behavior is the possibility that historical data may hide past inefficiencies that the company could reduce if it could identify them.

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Definitions:

Performance Test

An assessment method that requires individuals to execute specific tasks or activities rather than answer questions, measuring skills and abilities through actual performance.

Culture-Fair Test

A type of psychological test designed to be free of cultural bias, so that it accurately measures intelligence or other attributes across different cultures and ethnic groups.

Criterion-Related Validity

Refers to the extent to which a measure is related to an outcome.

Content Validity

The extent to which a test measures all aspects of the concept it intends to measure.