An Auto Parts Chain Asked Customers to Complete a Survey

question 115

Multiple Choice

An auto parts chain asked customers to complete a survey rating the chain's customer service as average, above average, or below average. The following shows the results from the survey: (See the Excel Data File.) The proportion of customers who felt the customer service was Average is the closest to ________.

• A) 0.20
• B) 0.33
• C) 0.46
• D) 0.53

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Definitions:

Material Price Variances

The difference between the actual cost of materials and the standard or expected cost, multiplied by the quantity purchased.

Time Materials

A pricing model where a customer pays based on the actual time spent on a project and the cost of materials used.

Recognition Of Variances

The process of identifying and documenting the differences between actual and budgeted costs.

Flexible Budgets

Budgets that adjust or flex with variations in activity levels or other relevant factors, allowing more accurate comparisons to actual results.