Consider the Following to Answer the Question(s) Below

question 1

Multiple Choice

Consider the following to answer the question(s) below:
The Dispenser Right Company makes a soft drink dispensing machine used in many fast food restaurants. When the machine is running properly, the average number of fluid ounces in the cup should be 14. Periodically the machines need to be tested to make sure that they have not gone out of adjustment. To do this, six cups are filled by a particular machine and a technician carefully measures the volume in each cup. In one such test, the following data were observed:

-In order to be 99% accurate to within 0.02 ounces, what sample size would be needed if the sample standard deviation is 0.18?

• A) 538
• B) 23
• C) 11
• D) 1159
• E) 440

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Definitions:

Period Cost

Expenses that are not directly tied to the production process and are charged to the period in which they are incurred.

Future Decisions

Decisions that will be made in the future, often based on forecasts or projections.

Variable Cost Method

A pricing strategy that only accounts for direct materials, direct labor, and variable manufacturing overhead costs, excluding any fixed costs from its calculations.

Total Cost Method

An accounting approach that includes all manufacturing or production costs (direct materials, direct labor, and manufacturing overhead) in the cost of finished goods.