A potato chip manufacturer has two packaging lines and wants to determine if the variances differ between the two lines. They take samples of n1 = 10 bags from line 1 and n2 = 8 bags from line 2. To perform the hypothesis test at the 0

Which one of the following is not a proper justification for adjusting entries?

A) Adjusting entries are necessary to ensure that the expense recognition principle is followed. B) Adjusting entries are necessary to ensure that the revenue recognition principle is followed. C) Adjusting entries are necessary to enable financial statements to be in conformity with generally accepted accounting principles. D) All of these are proper justifications for adjusting entries. E) Adjusting entries are necessary to bring the general ledger accounts in line with the budget.

Both ________ and ________ increase as the safety inventory is increased

A) fill rate, cycle service level B) lead time, cycle service level C) fill rate, lead time D) reorder point, lead time