The Sugar Producers Association Wants to Estimate the Mean Yearly

question 93

Multiple Choice

The Sugar Producers Association wants to estimate the mean yearly sugar consumption. A sample of 16 people reveals the mean yearly consumption to be 27 kg with a sample standard deviation of 9 kg. Assume a normal population. For a 99% confidence interval, what is the critical value needed?

• A) t = 1.753
• B) t = 2.131
• C) t = 2.947
• D) z = 1.645
• E) z = 1.96

Calculate and analyze direct materials and labor variances, including price, quantity, and efficiency variances.

Determine the responsibility for variances in direct material costs.

Apply flexible budget principles to forecast costs and income under varying production levels.

Understand the relationship between fixed costs, variable costs, and production volume in financial planning.

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Definitions:

Direct Method

An accounting practice of allocating support department costs directly to producing departments without consideration for interdepartmental services.

Sales Adjusted

Adjustments made to recorded sales figures for returns, allowances, or discounts to determine the actual net sales amount.

Cash Basis

An accounting method recognizing revenues and expenses when cash is actually received or paid out, rather than when earned or incurred.

Selling and Administrative Expense

Expenses related to the selling of products and the management of the business, not directly tied to production.