A Company Purchases a Remote Building Site for Computer Operations

question 97

Multiple Choice

A company purchases a remote building site for computer operations.The building will be suitable for operations after some expenditures.The wiring must be replaced to computer specifications.The roof is leaky and must be replaced.All rooms must be repainted and recarpeted and there will also be some plumbing work done.Which of the following statements is true?

• A)The cost of the building will not include the repainting and recarpeting costs.
• B)The cost of the building will include the cost of replacing the roof.
• C)The cost of the building is the purchase price of the building, while the additional expenditures are all capitalized as Building Improvements.
• D)The wiring is part of the computer costs, not the building cost.

Differentiate between various statistical tests and identify the appropriate scenarios for their use.

Interpret the chi-square test results in terms of the difference between observed and expected frequencies.

Comprehend the principles of nonparametric statistics, including their assumptions and applications.

Recognize the relationship between sample size and the assumption of parametric statistics.

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Definitions:

MC

Marginal Cost, the increase in total cost that arises from producing one additional unit of a good or service.

AVC

Average Variable Cost, the variable cost per unit of output.

Law Of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if all other variables remain at a constant.

Marginal Output

The additional quantity of a product that is produced from using one more unit of an input, keeping other inputs constant.