Exhibit 13.1 The Following Questions Are Based on the Output Below

question 38

Multiple Choice

Exhibit 13.1
The following questions are based on the output below.
A store currently operates its service system with 1 operator. Arrivals follow a Poisson distribution and service times are exponentially distributed. The following spreadsheet has been developed for the system.
-What is the probability that it will take less than or equal to 0.25 hours to service any call based on the following exponential probability distribution with rate μ = 5? ​

• A) 0.00
• B) 0.71
• C) 0.92
• D) 1.00

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Definitions:

Job Order Cost System

An accounting system that accumulates costs for each individual job or project, suitable for businesses producing unique products or services.

Process Cost System

An accounting system used to assign costs to units of production in continuous processes, tracking costs across various departments or stages of production.

Factory Labor

The workforce engaged in the manufacturing process within a factory, whose wages are considered a direct cost in the production of goods.

Selling and Administrative Expenses

Costs incurred that are not directly tied to the production of goods or services, such as salaries, rent, and advertising costs.