The Following Data Reflect the Number of Customers Who Return

question 73

Multiple Choice

The following data reflect the number of customers who return merchandise for a refund on Monday.Note these data reflect the population of all 10 Mondays for which data are available. Assume that this same exact pattern of data were replicated for the next ten days.How would this affect the standard deviation for the new population with 20 items?

• A)The standard deviation would be doubled.
• B)The standard deviation would be cut in half.
• C)The standard deviation would not be changed.
• D)There is no way of knowing the exact impact without knowing how the mean is changed.

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Definitions:

Mixed Cost

A cost that contains both variable and fixed cost elements and changes in total with changes in production volume but not proportionately.

High-low Method

An accounting technique used to estimate fixed and variable costs by analyzing the highest and lowest levels of activity and their corresponding costs.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor expenses.

Sales Volume

Sales volume refers to the total number of units of a product or service sold by a company within a specific time frame.