The Volume of Soda a Dispensing Machine Pours into a 12-Ounce

question 24

Multiple Choice

The volume of soda a dispensing machine pours into a 12-ounce can of soda follows a normal distribution with a mean of 12.30 ounces and a standard deviation of 0.20 ounce. The company receives complaints from consumers who actually measure the amount of soda in the cans and claim that the volume is less than the advertised 12 ounces. What proportion of the soda cans
Contain less than the advertised 12 ounces of soda?

• A) .9332
• B) .0668
• C) .4332
• D) .5668

---

Definitions:

Allowance Method

An accounting technique that estimates and deducts accounts receivable that may not be collectible, to more accurately represent a company's financial position.

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal, used in valuing inventory to reflect the net amount that can be realized.

Allowance for Doubtful Accounts

An estimation of future uncollectible amounts from customers, reducing the accounts receivable balance to a more realistic figure.

Previously Written Off

This term refers to debts or assets that had been removed from an organization's financial statements as losses but may later be recovered or re-evaluated.