If the Standard Deviation of Demand Is 100 Units and the Average

question 19

Multiple Choice

If the standard deviation of demand is 100 units and the average demand is 1000 units, then we can be 95% confident that actual sales will be 1000 units plus or minus about:

• A) 100 units
• B) 150 units
• C) 200 units
• D) 300 units
• E) 400 units

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Definitions:

Direct Materials

Raw materials that are directly traceable and allocable to the production of specific goods or services.

Bottling Department

A specific section within a manufacturing process focused on the filling of containers with liquids for distribution and sale.

Work in Process

Inventory that includes all partially completed goods that are still in the process of production.

Equivalent Unit

A measurement used in process costing that quantifies the amount of materials or labor required to produce a single unit of output in mixed or partial stages of completion.