Instruction 18-2
a Local Newspaper Has 10 Delivery Boys Who

question 74

Multiple Choice

Instruction 18-2
A local newspaper has 10 delivery boys who each deliver the morning paper to 50 customers every day. The owner decides to record the number of papers delivered on time for a 10-day period and construct a p chart to see whether the percentage is too erratic.
$$\begin{array} { | c | c | } \hline \text { Day } & \begin{array} { c } \text { Number of } \\\text { Papers Deliverd } \\\text { on Time }\end{array} \\\hline 1 & 46 \\\hline 2 & 45 \\\hline 3 & 46 \\\hline 4 & 45 \\\hline 5 & 43 \\\hline 6 & 48 \\\hline 7 & 46 \\\hline 8 & 49 \\\hline 9 & 48 \\\hline 10 & 47 \\\hline\end{array}$$
-Referring to Instruction 18-2,which expression best characterises the p chart?

• A) Increasing trend
• B) In control
• C) Cycles
• D) Individual outliers

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Definitions:

Journal Entry

A record of the financial transactions in the accounting books of a business, showing the accounts and amounts debited and credited.

Net Realizable Value

The estimated selling price of inventory in the ordinary course of business minus any costs of completion, disposal, and transportation.

Allowance for Doubtful Accounts

This is a contra account that reduces accounts receivable to reflect the estimated amount of debts that may not be collected.

Accounts Receivable

Financial obligations of customers to a firm for delivered or utilized goods or services that remain unpaid.