Of the Last 100 Customers Entering a Computer Shop, 25

question 42

Multiple Choice

Of the last 100 customers entering a computer shop, 25 have purchased a computer. If the relative frequency method for computing probability is used, the probability that the next customer will purchase a computer is _____.

• A) .25
• B) .50
• C) 1
• D) .75

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Definitions:

Process Costing

An accounting methodology used for homogenous products, where costs are assigned to production processes or departments and averaged over the units produced.

Cost per Unit

The cost to produce a single unit of product, calculated by dividing the total production cost by the number of units produced.

Total Manufacturing Cost

The aggregate expenses involved in making a product, including raw materials, direct labor, and overhead costs.

Job Costing System

An accounting method used to track costs and profitability of individual jobs or projects, allowing for precise control and reporting of expenses.