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09 Nov 2025, 22:32
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E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
45%
(medium)
Question Stats:
66% (02:00) correct
34%
(02:02)
wrong
based on 147
sessions
History
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Time
Result
Not Attempted Yet
A local department store hires college students for one month every spring to audit its unsold inventory. It costs the department store 20 percent less to pay wages to students than it would cost to hire outside auditors from a temporary service. Even after factoring in the costs of training and insuring the students against work-related injury, the department store spends less money by hiring the student auditors than it would by hiring auditors from the temporary service.
The statements above, if true, best support which of the following assertions?
(A) The amount spent on insurance for college-student auditors is more than 20 percent of the cost of paying the college students' basic wages.
(B) It takes 20 percent less time for the college students to audit the unsold inventory than it does for the outside auditors.
(C) The department store pays its college-student auditors 20 percent less than the temporary service pays its auditors.
(D) By hiring college students, the department store will cause 20 percent of the auditors at the temporary service to lose their jobs.
(E) The cost of training its own college-student auditors is less than 20 percent of the cost of hiring auditors from the temporary service.
The statements above, if true, best support which of the following assertions?
(A) The amount spent on insurance for college-student auditors is more than 20 percent of the cost of paying the college students' basic wages.
(B) It takes 20 percent less time for the college students to audit the unsold inventory than it does for the outside auditors.
(C) The department store pays its college-student auditors 20 percent less than the temporary service pays its auditors.
(D) By hiring college students, the department store will cause 20 percent of the auditors at the temporary service to lose their jobs.
(E) The cost of training its own college-student auditors is less than 20 percent of the cost of hiring auditors from the temporary service.
10 Nov 2025, 02:36
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I picked (E) here because what the question is saying is that
1. College students are paid 20% less than full time auditors
2. Factoring in training and insurance they are still more the economically viable option,
This means cost of training + insurance is less than 20% of what they pay to hire professionals, so training alone will definitely be under 20%
1. College students are paid 20% less than full time auditors
2. Factoring in training and insurance they are still more the economically viable option,
This means cost of training + insurance is less than 20% of what they pay to hire professionals, so training alone will definitely be under 20%
10 Nov 2025, 21:55
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Bunuel
A local department store hires college students for a month, during spring time to audit the UNSOLD inventory.
There are temporary auditors who are hired on a adhoc basis by the local departmental store. Suppose the wage of the temporary auditor is $100, then the students are paid 20% less = $80.
The local department store pays $80 as wages to the local students, then followed by work related injury coverage by insurance (WRI) and also spends some on Training (TC).
Total cost spend on student = $80+WRI + TC
This amount, $80+WRI + TC < $100
Rewriting it, we get WRI + TC < $20
let’s look at the options :
(A) The amount spent on insurance for college-student auditors is more than 20 percent of the cost of paying the college students' basic wages.
20% of $80 = $16
WRI is greater than $16 . We know that WRI + TC < $20. Thus, WRI can take the values $17,$18,$19. OR the value of $WRI can be less also. Hence, wrong.
(B) It takes 20 percent less time for the college students to audit the unsold inventory than it does for the outside auditors.
Time taken to audit is not explained in the question stem. Hence, wrong.
(C) The department store pays its college-student auditors 20 percent less than the temporary service pays its auditors.
This option speaks about the wages paid by two entities- local department store to the college students and the temporary service paying its auditors. More over, the wages is directly mentioned in the question stem. Hence, wrong.
(D) By hiring college students, the department store will cause 20 percent of the auditors at the temporary service to lose their jobs.
No where in the question is it mentioned, that hiring more college students have resulted in lower job opportunities for the temporary auditors. Hence wrong.
(E) The cost of training its own college-student auditors is less than 20 percent of the cost of hiring auditors from the temporary service.
This is what we can exactly infer from the question stem, the derivation WRI + TC < $20 is in line with the option. Hence correct.
Option E
