(I When the Special Rule of Multiplication Is Used Events

question 27

Multiple Choice

(i. When the special rule of multiplication is used events A and B must be independent.
(ii. A probability is subjective if it is based on a person's degree of belief and hunches that a
Particular event will happen.
(iii) If there are five vacant parking places and five automobiles arrive at the same time, they can
Park in 25 different ways.

• A) (i), (ii) and (iii) are all correct statements
• B) (i) is a correct statement but not (ii) or (iii).
• C) (i) and, (iii) are correct statements but not (ii).
• D) (i) and, (ii) are correct statements but not (iii).
• E) (i), (ii) and (iii) are all false statements.

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Definitions:

Machine Hours

A measure of production time, calculated by the total hours machines are in operation over a set period.

Under-Applied Overhead

A situation where the allocated overhead costs are less than the actual overhead incurred.

Over-Applied Overhead

A situation in cost accounting where the allocated overhead for a period exceeds the actual overhead costs incurred.

External Financial Reporting

The process of providing financial information to outside parties, such as investors and creditors, through statements and reports.