In Making Active Predictions Based on Sample Data It Requires

question 26

Multiple Choice

In making active predictions based on sample data it requires the use of what sort of reasoning?

• A) Deductive reasoning only
• B) Inductive reasoning only
• C) Always deductive reasoning and only inductive reasoning when determining if an estimator is unbiased
• D) None of the answers is correct.

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Definitions:

Variance

The difference between planned or expected outcomes and the actual outcomes in finance and accounting.

Cost Drivers

Factors that cause a change in the cost of an activity, used in activity-based costing to allocate costs accurately.

Revenue Variances

The difference between actual revenue and budgeted or projected revenue.

Spending Variances

The difference between actual spending and budgeted or planned spending in various categories.