Which of the Following Statements Is Not True Regarding Probabilities

question 26

Multiple Choice

Which of the following statements is not true regarding probabilities:

• A)probability is the basis for inferential statistics
• B)probabilities are subjective measures with limited value in business.
• C)probabilities are used to determine the likelihood of certain outcomes
• D)probabilities can inform many business decisions.

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Definitions:

Service Department

A department that does not directly engage in operating activities; rather, it provides services or assistance to the operating departments.

Equivalent Unit

A measure used in cost accounting to express the amount of work done by an incomplete process on units of production in terms of fully completed units.

Process Costing

A costing methodology used in industries where production is continuous and costs are assigned to units of output through the manufacturing process.

First-In, First-Out

An inventory accounting method where the oldest items (first-in) are sold or used first (first-out), affecting the cost of goods sold and ending inventory valuation.