Observation Is an Unreliable Data Collection Method Because Observers May

question 30

True/False

Observation is an unreliable data collection method because observers may have different perceptions of what they see.

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Definitions:

Predetermined Overhead Rate

A rate used to allocate estimated overhead costs to products or services, based on a preselected activity base.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, excluding direct materials and direct labor expenses.

Machine-Hours

The total number of hours that machinery is operating during a certain period, often used as a basis for allocating manufacturing overhead.

Manufacturing Overhead

All indirect factory-related costs incurred while producing a product, such as utilities and salaries for management.