Examlex
A methods and measurements analyst needs to develop a time standard for a certain task. In a preliminary study, he observed one of his workers perform this task five times, with the following results: How many observations should be made if the analyst wants to be 99.74 percent confident that the maximum error in the observed time is two seconds? Assume that the standard deviation of each task time is four seconds.
Variable Expenses
Costs that change in proportion to the activity of a business, such as raw material costs, sales commissions, or delivery charges.
Fixed Expenses
Expenses that remain constant regardless of variations in the level of production or the volume of sales, like lease payments or wages.
Degree Of Operating Leverage
A financial ratio that measures the sensitivity of a company's operating income to its sales volume, indicating the impact of fixed costs on earnings.
Variable Expenses
Expenses that vary directly with the amount of activity or production volume.
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