Exhibit 13.7 The Following Questions Refer to the Information and Output Below

question 36

Short Answer

Exhibit 13.7
The following questions refer to the information and output below.
A tax accountant has found that the time to serve a customer has a mean of 30 minutes (or 0.5 hours) and a standard deviation of 6 minutes (or 0.1 hours). Customer arrivals follow a Poisson distribution with an average of 60 minutes between arrivals. The following queuing analysis spreadsheet was developed from this information.
-Refer to Exhibit 13.7. Based on this report what is the probability that a customer does not have to wait for assistance with his or her taxes?

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Definitions:

Revenue Recognition

An accounting principle that determines the specific conditions under which income becomes realized as revenue.

Completed Contract

This accounting practice records the income and expenses of projects after they are finalized, ensuring financial statements only reflect finished work.

Percentage-of-Completion

An accounting method that recognizes revenues and expenses in relation to the completion percentage of a project.

Revenue Recognition

The accounting principle dictating the specific conditions under which income becomes recognized as revenue on the financial statements.