A Survey of 50 Retail Stores Revealed That the Average

question 37

Multiple Choice

A survey of 50 retail stores revealed that the average price of a microwave was $375 with a sample standard deviation of $20. Assuming the population is normally distributed,what is the 99% confidence interval to estimate the true cost of the microwave?

• A)$367.42 to $382.58
• B)$315.00 to $415.00
• C)$323.40 to $426.60
• D)$335.82 to $414.28

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Definitions:

Inventory Accounting

The process of valuing and managing inventories, focusing on the cost of goods sold, inventory valuation, and inventory management practices.

Physical Quantities

The measurable amount of a stock or resource, expressed in units of weight, volume, or count.

Ending Inventory

The aggregate sum of products ready for purchase at the closure of a financial period.

Perpetual Inventory System

A bookkeeping approach that immediately logs the buying or selling of inventory via computerized point-of-sale systems and enterprise asset management software.