Which of the Following Statements Concerning Ease of Adjustment Codes

question 56

Multiple Choice

Which of the following statements concerning ease of adjustment codes is incorrect

• A)'Green' costs adjust automatically to changes in activity.
• B)'Yellow' costs could be adjusted to changes in activity, but such adjustments require management action; the adjustment is not automatic.
• C)'Red' costs cannot be adjusted to changes in activity.
• D)The costs of idle capacity and organisation-sustaining costs are not assigned codes.

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Definitions:

Confidence Intervals

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter.

Lower And Upper Limit

The minimum and maximum values in a set range, defining the bounds of a variable or measurement.

Mean Score

The arithmetic average of a set of numerical values, computed by summing the values and then dividing by the number of values.

Confidence Intervals

A span of numerical values, obtained through sample data, which is expected to encompass the value of an unspecified population characteristic.