To Determine If a New Computer System Is Improving the Use

question 343

Multiple Choice

To determine if a new computer system is improving the use of a manufacturer's limited facilities in serving the largest number of customers, an auditor should compare.

• A) The number of reworked orders and their costs before and after system installation.
• B) Inventory and materials handling costs before and after system installation.
• C) The number of orders filled and their cycle times before and after system installation.
• D) The number of reworked orders and orders filled before and after system installation.

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Definitions:

Degrees Freedom

Degrees of freedom are the number of values in a calculation that are free to vary, often related to the sample size in statistical analyses.

F-ratio Equation

The statistical calculation used in ANOVA testing to compare the variance among group means to the variance within groups, indicating whether significant differences exist.

F-ratio Equation

A statistical formula used in ANOVA to compare variance among groups, calculated as the variance between the group means divided by the variance within the groups.

Household Income

The combined gross income of all members of a household who are 15 years old and older, whether related or not.