A Waiting Line Meeting the Assumptions of M/M/1 Has Average

question 16

Multiple Choice

A waiting line meeting the assumptions of M/M/1 has average time between arrivals of 20 minutes and services items in an average of 10 minutes each; the utilization factor is approximately

• A) 0.25
• B) 0.33
• C) 0.50
• D) 0.67
• E) 3.00

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period.

Current Cost

The present-day cost to replace an asset or to purchase an equivalent asset, reflecting current market prices.

Actual Cost

The actual amount of money spent to acquire an asset, including all costs necessary to get the asset ready for its intended use.

Specific Identification

An inventory valuation method in which the cost of each individual item in inventory is tracked and used to compute cost of goods sold.