A Student Has Five Motor Vehicle Accidents in One Year

question 52

Essay

A student has five motor vehicle accidents in one year and claims that having five accidents is not unusual.
Use the frequency distribution below to determine if the student is correct. $$\begin{array} { l | c c c c c c } \text { Accidents } & 0 & 1 & 2 & 3 & 4 & 5 \\\hline \text { Students } & 260 & 500 & 425 & 305 & 175 & 45\end{array}$$

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Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs (both variable and fixed) in the cost of a product.

Unit Product Cost

The calculated cost associated with producing a single unit of product, including direct materials, labor, and overhead.

Absorption Costing

An accounting practice where the cost of a product is calculated by including all expenses from manufacturing, like direct materials, direct labor, and both variable and fixed overheads.

Unit Product Cost

The total cost (fixed and variable) assigned to a unit of product, determining its cost of production per unit.