If the Average Arrival Rate Falls to 11,the Average Time

question 69

Multiple Choice

If the average arrival rate falls to 11,the average time a customer spends in the queue ________.

• A)reduces by 14 seconds
• B)reduces by 7 seconds
• C)increases by 7 seconds
• D)increases by 14 seconds

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Definitions:

Variable Costing

A method of inventory costing that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of goods sold.

Absorption Costing

An accounting method that includes all direct costs and fixed and variable overhead costs in the cost of a product.

Net Income

The company's net income following the deduction of all expenditures and taxes from its total revenue.

Variable Selling Costs

Costs that vary directly with the volume of units sold, such as commissions and shipping expenses.