The Supervisor at a Large Plant Estimates That There Are

question 70

Multiple Choice

The supervisor at a large plant estimates that there are defective parts about 1% of the time. If the plant produces 20,000 parts in a week, what is the variance for the number of defective parts?

• A) 200
• B) 198
• C) 14.1
• D) 138

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Definitions:

Operating Expenses

Costs associated with the day-to-day operations of a business.

Amortization Expense

The systematic allocation of the cost of an intangible asset over its useful life, reflecting the consumption of the asset's value over time.

Intangible Assets

Assets that lack physical substance, such as patents, trademarks, and goodwill, which have value due to the rights or information they confer.

Trademark

A recognizable sign, design, or expression which identifies products or services of a particular source.