A Company Conducted a Single Sample of a Time Study

question 1

Multiple Choice

A company conducted a single sample of a time study for 10 cycles of a job and if the average cycle time was 0.60 minutes,and the standard deviation of the sample was 0.075 minutes,for the company to be 95% confident that the average time computed for the time study is within 5% of the true average cycle time,the time study would need to encompass

• A)16 cycles
• B)20 cycles
• C)24 cycles
• D)32 cycles

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Definitions:

Accounting Period

A specific time frame covered by financial statements, typically a fiscal quarter or year, used for calculating earnings and managing taxation.

External Auditor

An independent third party hired to examine the financial statements of an entity to ensure accuracy and adherence to accounting standards.

Internal Control System

A set of procedures and mechanisms implemented by a business to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Cost-Benefit

An analysis or assessment comparing the costs and benefits of a decision or project to determine its feasibility or worthiness.