Difference Estimation, Ratio Estimation and Mean- Per- Unit Estimation Are

question 142

Multiple Choice

Difference estimation, ratio estimation and mean- per- unit estimation are all techniques that constitute the general class of methods called:

• A) variables sampling.
• B) attributes sampling.
• C) monetary- unit sampling.
• D) block sampling.

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Definitions:

Raw Materials Price Variance

The difference between the actual cost and the standard cost of raw materials used in production, reflecting price fluctuations.

Standard Cost System

An accounting system that uses predetermined costs for products or services to compare against actual costs for performance evaluation.

Actual Results

The real outcomes or final figures that have been achieved by a business after a specific period, which can be compared against forecasts or budgets.

Materials Quantity Variance

An analysis used to assess the discrepancy between the expected amount of materials and the actual amount used, based on standard costs, providing insight into manufacturing efficiency.