Consider the Following Scenario When Answering the Following Questions

question 19

Multiple Choice

Consider the following scenario when answering the following questions:
Imagine a game show on television where one lucky contestant is presented with three upside-down buckets that are numbered 1,2,and 3.Under one of the buckets is a five-ounce gold bar.Under each of the other two buckets is a one-ounce gold bar.After the game ends,the contestant receives the gold bar that is under his or her bucket.
The host of the game show asks the contestant to choose one of the three buckets.After the contestant makes a choice,the host lifts up one of the remaining two buckets to reveal a one-ounce gold bar under it.At this point,only two buckets remain uncovered: the bucket that the contestant originally chose and the bucket that was not uncovered by the host.
The host subsequently asks the contestant if he or she would like to keep the original bucket or change buckets to the only other bucket remaining.
-If the contestant does not change buckets and stays with the original bucket chosen,what is the probability that the contestant will win the one-ounce gold bar?

• A) 1/8
• B) 1/3
• C) 1/2
• D) 2/3
• E) 5/8

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Definitions:

Activity Rate

The predefined cost-driver rate used in Activity-Based Costing to allocate overhead costs to products or services, based on each activity’s usage by those products or services.

Activity Cost Pool

A collection of overhead costs attributed to particular activities, used in activity-based costing to allocate costs more accurately to products or services.

Activity-Based Costing

A costing method that assigns costs to products and services based on the activities and resources that go into producing them, aiming to provide more accurate cost information.

Overhead

General business expenses that are not directly tied to specific products or services but are necessary for the overall operation of a business, such as rent, utilities, and administrative costs.