As a General Rule of Thumb, If the Items Selected

question 73

True/False

As a general rule of thumb, if the items selected for a sample are not replaced and the sample size is less than 5 percent of the population, the binomial distribution can be used to approximate the hypergeometric distribution.

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Definitions:

LIFO Inventory Method

An accounting method that assumes the last items of inventory purchased are the first to be used or sold, affecting the cost of goods sold and inventory valuation.

FIFO Inventory Method

An accounting method for valuing inventory that assumes the first items purchased are the first ones sold.

Ending Inventory

The total value of all inventory that a company has in stock at the end of an accounting period.

Decreasing Unit Costs

A situation in which costs per unit of output fall as the volume of production increases, often due to economies of scale.