SCENARIO 10-15 The Table Below Presents the Summary Statistics for the Starting

question 117

Multiple Choice

SCENARIO 10-15
The table below presents the summary statistics for the starting annual salaries (in thousands of dollars) for individuals entering the public accounting and financial planning professions.
Sample I (public accounting) :

Test whether the mean starting annual salaries for individuals entering the public accounting professions is higher than that of financial planning assuming that the two population variances are the same.
-Referring to Scenario 10-15,what additional assumption is needed for the test to be valid?

• A)The two sample sizes have to be equal.
• B)The two population sizes have to be equal.
• C)The two population means have to be the same.
• D)The population distributions of the two annual salaries have to be normal.

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Definitions:

Cost Allocation

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

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.