What Are the Principal Assumptions of Analysing Categorical Data? (You

question 8

Multiple Choice

What are the principal assumptions of analysing categorical data? (You may select more than one option.)

• A) Independence of residuals.
• B) No expected frequency should be less than 5.
• C) Data should be normally distributed.
• D) Sphericity must be assumed.

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Definitions:

Activity Bases

In cost accounting, refers to a measurable unit such as machine hours or labor hours that is used to assign costs to activities.

Quality Inspections

The process of reviewing and testing products to ensure they meet the required safety and quality standards.

Machine Setups

The preparation and adjustments made to a machine before starting a production run, including configuration for new products or batches.

Product Costs

The total costs directly tied to the creation of a product, encompassing direct labor, direct materials, and manufacturing overhead.