Car Sounds Sells and Installs High-End Sound Systems for Cars

question 50

Multiple Choice

Car Sounds sells and installs high-end sound systems for cars.10% of the systems that the company installs need to be re-installed because of faulty first-time installation.You plan to randomly select 20 of Car Sounds' recent installations.In this sample, there's less than a 2% chance that more than what number of the systems will have to be re-installed.

• A)5
• B)4
• C)6
• D)3
• E)10

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Definitions:

Direct Labor

Labor costs that are directly attributable to the production of goods or services, such as wages for workers manufacturing a product.

Indirect Labor

Labor costs not directly associated with the production of goods or services, such as salaries of supervisors or maintenance staff.

Product Costs

All costs directly tied to the creation of a product, including materials, labor, and allocated overhead.

Materials Overhead

Costs related to the production process that are not directly tied to the product being manufactured, such as factory supplies and equipment maintenance.