When Using an Activity-Based Costing System in Service Companies,the Allocation

question 55

True/False

When using an activity-based costing system in service companies,the allocation of indirect costs to the cost object is the last step of the process.

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Definitions:

Predictive Validity

The extent to which a score on a scale or test forecasts or correlates with a future behavior, outcome, or criterion.

Reliability

Refers to the consistency and stability of a test or measurement over time.

IQ Scores

Numerical assessments derived from standardized tests designed to measure a person's intelligence relative to their age group.

Test Bias

A characteristic of a test that results in systematic differences in scoring that unfairly advantage or disadvantage certain groups.