The Speedometer of a Car Shows 37 Mph

question 7

Multiple Choice

The speedometer of a car shows 37 mph. The actual speed is 43 mph. What is the percent of error to the nearest tenth?

• A) 13.3
• B) 13.4
• C) 13.7
• D) 14.0

---

Definitions:

Standard Cost System

An accounting system that uses predetermined costs for product costing and decision making, facilitating budgeting and variance analysis.

Standards

Criteria or benchmarks used for measuring performance or quality in various fields, including manufacturing, auditing, and accounting.

Actual Information

Factual data or evidence that is true and accurate, without alteration or distortion.

Raw Materials Quantity Variance

The difference between the actual quantity of raw materials used in production and the estimated quantity expected to be used, measured in terms of cost.