Two Chi-Square Distributions Were Plotted on the Same Chart

question 40

Multiple Choice

Two chi-square distributions were plotted on the same chart. One distribution was for 3 degrees of freedom and the other was for 12 degrees of freedom. Which distribution would tend to approach a normal distribution?

• A) 3 degrees
• B) 12 degrees
• C) 15 degrees
• D) All would

Compute job order costing including balance on job cost sheets and cost per unit.

Calculate predetermined overhead rates based on different allocation bases.

Journalize entries for labor cost incurred and the application of factory overhead.

Apply factory overhead based on machine hours and calculate over-or underapplied amounts.

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Lease Payments

Periodic payments made by a lessee to a lessor for the use of an asset over a specified lease term.

Net Present Value

A financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows.

Capital Budgeting

The process of planning and managing a firm’s investment in long-term assets.