The Deviation Rate in a Representative Sample Is

question 74

Multiple Choice

The deviation rate in a representative sample is:

• A) the auditor's calculation of the error rate in the population.
• B) the number of items in the population containing a particular attribute.
• C) the auditor's best estimate of the deviation rate.
• D) none of the above

---

Definitions:

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing as scale increases.

Diseconomies of Scale

The phenomenon where production costs increase as a firm expands output, leading to reduced efficiency.

U-Shaped Long-Run Average Cost Curve

This describes the phenomenon where, over time, average costs first decrease with increased production, hit a minimum, and then increase with further production increase, forming a U-shape.

Minimum Cost

The lowest possible expense at which a particular set of goods or services can be produced or acquired.