On Average, 15 Minutes Elapse Between Discoveries of Fraudulent Corporate

question 32

Multiple Choice

On average, 15 minutes elapse between discoveries of fraudulent corporate tax returns in a certain IRS office. What is the probability that less than 30 minutes will elapse before the next fraudulent corporate tax return is discovered?

• A).1353
• B).6044
• C).7389
• D).8647

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Definitions:

Flexible Budget

A budget that modifies in response to fluctuations in activity levels or volume within an enterprise.

Manufacturing Costs

The total costs involved in making products which can include direct materials, direct labor, and manufacturing overhead.

Direct Material

These are the raw materials and components that are consumed directly in the manufacture of a product.

Variable Overhead

Costs that vary in total in direct proportion to changes in activity level or volume, such as utility costs or raw materials that fluctuate with production levels.