What Are the Assumptions of The $\chi$ ²-Test

question 57

Essay

What are the assumptions of the $\chi$ ²-test?

---

Definitions:

Direct Labour

Direct Labour refers to the wages and salaries of employees who are directly involved in the production of goods or services, considered as a variable cost.

Direct Labour Cost

The total expense a company incurs for paying the wages of direct labor employees directly involved in producing goods or services.

Overhead Rate

The rate used to allocate manufacturing overhead to individual units of product, typically based on a standard measure such as labor hours or machine hours.

Normal Costing System

An accounting method that assigns indirect costs based on a predetermined rate and direct costs based on actual values.