Goodness of Fit The Vertical Difference between actual and predicted cost are much smaller for machine-hours than direct labor-hours. Machine-hours has a stronger relationship (or goodness of fit) with indirect manufacturing labor costs.
Goodness of FitThe Vertical Difference between actual and predicted cost are much smaller for machine-hours than direct labor-hours.Machine-hours has a stronger relationship (or goodness of fit) with indirect manufacturing labor costs.