The Smaller the Spread of Scores Around the Arithmetic Mean

question 103

Multiple Choice

The smaller the spread of scores around the arithmetic mean

• A)the smaller the coefficient of variation.
• B)the smaller the interquartile range.
• C)the smaller the standard deviation.
• D)All of the above.

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Definitions:

Direct Material Quantity Variance

The variance between the real amount of materials consumed in production and the anticipated standard quantity, multiplied by the cost per unit set by standards.

Actual Production

The total amount of output that a company has produced within a specific period.

Normal Production

Normal Production refers to the average amount of goods or services produced during a specific period under typical operating conditions.

Favourable Variances

Differences between expected and actual performance that are beneficial to a company's financial health.