Suppose the Average Size (In Square Feet)of Homes in a Certain

question 119

Multiple Choice

Suppose the average size (in square feet) of homes in a certain region is 2,869. Assume the variable
Is normally distributed with standard deviation 100. If a person in the region was intending to build
A 3,099 square foot home but downsized and built a 2,794 square foot home, what was the change in
Percentile rank from the original plan to the actual home that was built?

• A)The change in percentile rank is 98.
• B)The change in percentile rank is 76.
• C)The change in percentile rank is 22.
• D)The change in percentile rank is 55.

Comprehend the concept of overapplied overhead and its implications on cost management.

Grasp how actual manufacturing overhead costs are allocated and the role of a predetermined overhead rate.

Recognize the importance and structure of job cost sheets in cost accounting.

Identify the purpose and scope of cost accounting within a business context.

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Definitions:

Activity Measure

An activity measure, often used in cost accounting, quantifies the amount of work performed or the level of production activity achieved.

Revenue Variance

The difference between actual revenue and budgeted revenue, often analyzed to understand financial performance.

Spending Variances

Differences between the budgeted or planned amount of expenses and the actual amount spent.

Customers Served

The number of consumers who have been provided with services or products by a business during a specified period.