When Dealing with the Number of Occurrences of an Event

question 7

Multiple Choice

When dealing with the number of occurrences of an event over a specified interval of time or space, the appropriate probability distribution is a

• A)binomial distribution
• B)Poisson distribution
• C)normal distribution
• D)hypergeometric probability distribution

---

Definitions:

Conversion Costs

The combined costs of direct labor and manufacturing overhead, which are incurred to convert raw materials into finished goods.

FIFO Method

"First In, First Out," an inventory valuation method where goods first purchased or produced are sold first, affecting inventory cost and profits.

Process Costing

An accounting method used where costs are accumulated for a continuous process and then assigned to individual units of output.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, making them comparable to fully completed units.