A Survey of Top Executives Revealed That 35% of Them

question 59

Multiple Choice

A survey of top executives revealed that 35% of them regularly read Time magazine,20% read Newsweek,and 40% read U.S. News & World Report. A total of 10% read both Time and U.S. News & World Report. What is the probability that a particular top executive reads either Time or U.S. News & World Report regularly?

• A)0.85
• B)0.06
• C)1.00
• D)0.65

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Definitions:

Standard Cost System

An accounting system that uses cost estimates for material, labor, and overhead to assign costs to products and analyze variances.

Fixed Manufacturing Overhead Rate

A consistent charge per unit of production or period that allocates the total fixed manufacturing overhead costs.

Variances

The difference between expected and actual performance or costs in business operations.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, often used as a basis for allocating manufacturing overhead costs.