The Cost Hierarchy Can Be Used to Organize Cost Information

question 4

Multiple Choice

The cost hierarchy can be used to organize cost information for decision-making.Which cost isnot part of the product cost hierarchy of expenses?

• A)Capacity-sustaining.
• B)Product-sustaining.
• C)Customer-sustaining.
• D)Vendor-sustaining.

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Definitions:

Probability

A measure of the likelihood that an event will occur, often expressed as a number between 0 and 1.

Poisson Random Variable

A type of discrete random variable that expresses the probability of a given number of events occurring in a fixed interval of time or space.

Poisson Probabilities

Probabilities calculated under the assumption of a Poisson distribution, typically used to model the number of times an event occurs in a fixed interval of time or space.

Calculate

To determine something mathematically, often by using a specific formula or procedure.