The Probability That a System Is in a Particular State

question 20

Multiple Choice

The probability that a system is in a particular state after a large number of periods is

• A)independent of the beginning state of the system.
• B)dependent on the beginning state of the system.
• C)equal to one half.
• D)the same for every ending system.

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Definitions:

Variable Costing

A costing method that includes only variable manufacturing costs in product costs and treats fixed manufacturing costs as period costs.

Finished Goods

Completed products ready for sale or shipment to customers, found as an inventory category in the balance sheet.

Fixed Overhead

Refers to the total of all indirect costs that remain constant regardless of the level of production or business activity.

Absorption Costing

Absorption Costing is an accounting method that includes all of the manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.