The Oxnard Retailers Anti-Theft Alliance (ORATA)published a Study That Claimed

question 84

Multiple Choice

The Oxnard Retailers Anti-Theft Alliance (ORATA) published a study that claimed the causes of disappearance of inventory in retail stores were 30 percent shoplifting,50 percent employee theft,and 20 percent faulty paperwork.The manager of the Melodic Kortholt Outlet performed an audit of the disappearance of 80 items and found the frequencies shown below.She would like to know if her store's experience follows the same pattern as other retailers. Under the null hypothesis that her store follows the published pattern,the expected number of items that disappeared due to shoplifting is:

• A) 16.
• B) 40.
• C) 24.

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Definitions:

Labor Rate Variance

The variance between the real labor costs and the projected or normative labor costs.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the expected (or standard) variable overhead based on output levels.

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected cost, based on standard prices and quantities.

Standard Costs

Predetermined or estimated costs used for budgeting and measuring performance, typically under ideal operating conditions.