A Study of a Company's Practice Regarding the Payment of Invoices

question 26

Multiple Choice

A study of a company's practice regarding the payment of invoices revealed that on the average an invoice was paid 20 days after it was received. The standard deviation equalled five days. A sample of
25 invoices is selected. Assuming that the distribution is normal, what percent of the sampled invoices were paid within 15 days of receipt?

• A) 100%
• B) 37.91%
• C) 34.13%
• D) 86.74%
• E) None of the choices are correct

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Definitions:

Direct Materials

The raw materials that are directly traceable to the manufacturing of a product.

Microbrewery

A small brewery that produces beer in limited quantities, often emphasized on quality, flavor, and brewing technique.

Flavor Specifications

Detailed descriptions of the ingredients, proportions, and processes that define the specific taste profile of a food or beverage product.

Conversion Costs

All manufacturing costs other than direct material costs.