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General Ltd

question 96

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General Ltd. budgeted fixed overhead costs of $25,000 per quarter and 1,000 units per quarter in its normal absorption costing system. Any volume variance is carried forward and closed at year end. The company experienced the following activity: General Ltd. budgeted fixed overhead costs of $25,000 per quarter and 1,000 units per quarter in its normal absorption costing system. Any volume variance is carried forward and closed at year end. The company experienced the following activity:   The volume variance was favorable in quarter(s) ? A)  2, 3, and 4 B)  2 and 3 C)  3 and 4 D)  3 The volume variance was favorable in quarter(s) ?


Definitions:

Convergent Validity

The degree to which two measures that theoretically should be related are actually related.

Discriminant Validity

The degree to which a concept or measurement is not associated with other concepts or measurements it's supposed to be unrelated to.

Predictive Validity

The extent to which a test, measurement, or tool can accurately forecast or predict a specific outcome.

Face Validity

Refers to the extent to which a test appears to measure what it is intended to measure, based purely on its surface characteristics.

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