A Manager Who Is Conducting a Time Study Now Needs

question 18

Multiple Choice

A manager who is conducting a time study now needs an accuracy of ±0.1 minutes, rather than ±0.2 minutes as in the past. Because of this change in accuracy, the adequate sample size becomes

• A) one-fourth as large
• B) one-half as large
• C) twice as large
• D) four times as large
• E) none of the above

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Definitions:

Sale Items

Products that are offered to customers at a reduced price for a promotional or clearance purpose.

Specific Invoice Method

A method used in inventory and cost accounting to specifically track the cost associated with individual inventory items.

Cost of Goods Sold

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

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding new purchases to beginning inventory and subtracting costs of goods sold.