A Cafeteria Proposes to Serve 4 Main Entrees

question 41

Short Answer

A cafeteria proposes to serve 4 main entrees. For planning purposes, the manager expects that the proportions of each that will be selected by his customers will be: Of the first 100 customers, 44 selected chicken, 24 selected roast beef, 13 select steak, and 10 selected fish. Should the manager revise his estimates? Use = 0.01. = ______________
Critical Value(s) = ______________
Conclusion: ______________
The manager ______________ revise his estimates.

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Definitions:

Standard Cost System

An accounting method that uses predetermined costs for valuing inventory and recognizes variances between these costs and actual costs.

Cost of Goods Sold

The primary costs involved in the production of goods a company deals in, including the expenses for materials and labor.

Variances

Differences between planned, budgeted, or standard costs and actual costs, used in performance measurement and control.

Standard Cost

A predetermined cost of manufacturing, delivering, or producing goods under normal conditions.