A Machine That Produces a Major Part for an Airplane

question 69

Multiple Choice

A machine that produces a major part for an airplane engine is monitored closely. In the past, 6% of the parts produced would be defective. With a .95 probability, the sample size that needs to be taken if the desired margin of error is .04 or less is

• A) 70.
• B) 69.
• C) 135.
• D) 136.

---

Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are a significant portion of production costs.

Raw Materials Inventory

The stock of basic materials that are used in production but have not yet been processed.

Standard Costs

Predetermined or budgeted costs for materials, labor, and overhead, used as benchmarks to measure actual performance and manage costs.

Standard Costs

Standard costs are estimated expenses related to the production of goods or services under normal conditions.