The Coefficient of Variation Is a Unit-Free Measure of Dispersion

question 20

True/False

The coefficient of variation is a unit-free measure of dispersion.

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Definitions:

Standard Price

Standard price is the pre-determined cost that a company expects to pay for goods, materials, or services, used in budgeting and cost control.

Actual Output

Actual output is the real quantity of goods or services produced by a company or economy, as opposed to planned or theoretical outputs.

Standard Costing

A cost accounting method that assigns fixed overhead costs to goods produced based on standard cost rates, helping to analyze variances between expected and actual costs.

Direct Labour Hours

The total hours worked by production employees that are directly involved in the manufacturing process.