The Most Commonly Used Method of Statistical Sampling for Tests

question 42

Multiple Choice

The most commonly used method of statistical sampling for tests of details of balances is:

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

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Definitions:

Fixed Costs

Costs that remain constant for a set period of time, regardless of changes in the level of activity or volume of output.

Contribution Margin Ratio

The portion of sales revenue that exceeds variable costs, expressed as a percentage.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business.

Contribution Margin

The amount remaining from sales revenue after variable costs are deducted, indicating how much contributes to covering fixed costs and generating profit.