Answer the Following Questions Using the Information Below

question 160

Multiple Choice

Answer the following questions using the information below:
At the Todd Company, the cost of the personnel department has always been charged to production departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.

-If the number of new hires is considered the cost driver, what amount of personnel costs will be allocated to Department A?

• A)$24,000
• B)$10,667
• C)$102,400
• D)$40,000

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Definitions:

Concurrent Validity

The degree to which the results of a test correlate with the results of an established test measuring the same construct at the same time.

Content Validity

The extent to which a test measures all aspects of the concept or construct it is intended to assess, ensuring the test content is representative of the domain it's supposed to cover.

Construct Validity

The degree to which an assessment or tool accurately quantifies the theoretical idea it aims to evaluate.

Content Validity

The extent to which a test measures all aspects of the concept or behavior it is intended to assess.