A Distribution of Service Times at a Waiting Line Indicates

question 63

Multiple Choice

A distribution of service times at a waiting line indicates that service takes 12 minutes 30% of the time and 14 minutes 70% of the time. In preparing this distribution for Monte Carlo analysis, the service time 13 minutes would be represented by the random number range

• A) 00 through 29.
• B) 01 through 30.
• C) 30 through 99.
• D) 31 through 00.
• E) None of these; 13 minutes is not a possible outcome.

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Definitions:

Cost Allocation

The process of identifying, aggregating, and assigning costs to cost objects, such as products, departments, or projects.

Other Support Department

Units within an organization not directly involved in core operations but that provide essential services or support to primary operations departments.

Variable Costing

An accounting method in which variable costs are charged to cost units and fixed costs are treated as period costs, affecting profit calculation for the period.

Absorption Costing

A costing technique that incorporates all costs associated with manufacturing a product, including direct materials, direct labor, along with both variable and fixed overhead expenses.