What Assumptions Apply to Multilevel Linear Models

question 9

Multiple Choice

What assumptions apply to multilevel linear models?

• A) Linearity, normality, and homoscedasticity
• B) Linearity, independence of errors, and homoscedasticity
• C) Independence of errors, homoscedasticity and normality
• D) Normality, Linearity and heterogeneity

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Definitions:

Unit Product Cost

The total cost to produce one unit of product, including labor, materials, and overhead.

Predetermined Overhead Rate

A rate calculated prior to the accounting period that is used to allocate overhead costs to products or job orders, based on estimated overhead costs and an allocation base.

Job-Order Costing

A cost accounting system that accumulates costs according to specific jobs or orders, allowing for detailed cost tracking.

Manufacturing Cost

The total expense incurred in the production of goods, including direct materials, direct labor, and manufacturing overhead.