Q488
Relationship between cost and cost driver is economically plausible if goodness of fit
A.
has meaning
AnswerB.
has no meaning
C.
has index values
D.
has no index values
Answer: Option A
Solution
Answer: Option A
Solution:
Relationship between cost and cost driver is economically plausible if goodness of fit has meaning. The goodness of fit test is a statistical hypothesis test to see how well sample data fit a distribution from a population with a normal distribution. In other words, it tells you if your sample data represents the data you would expect to find in the actual population.