A New Computer System Reduced the Time for Printing the Payroll

question 11

Multiple Choice

A new computer system reduced the time for printing the payroll from 47 minutes to 27 minutes.
a) What is the amount of the decrease?
b) What percent decrease does this amount represent? Round your answer to the nearest percent.

• A) a) 30 minutes; b) 85 \(\%\)
• B) a) 20 minutes; b) 43 \(\%\)
• C) a) 20 minutes; b) 85 \(\%\)
• D) a) 30 minutes; b) 43 \(\%\)
• E) a) 30 minutes; b) 4 \(\%\)

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Definitions:

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material, labor, and overhead costs.

Purchase Discounts

A deduction from the stated price of goods or services allowed by the seller to the buyer for prompt payment.

Acquisition Cost

The total cost incurred to acquire an asset, including purchase price and all expenses directly tied to the acquisition.

Net Price Method

An accounting approach that calculates the cost of goods sold or purchased after deducting any discounts, rebates, or allowances from the gross price.