If the Size of the Sample to Be Used in a Particular

question 52

Multiple Choice

If the size of the sample to be used in a particular test of attributes has NOT been determined by using statistical concepts, but the sample has been chosen in accordance with random selection procedures:

• A) the auditor has committed a non- sampling error.
• B) the auditor will have to evaluate the results by reference to the principles of discovery sampling.
• C) the auditor may or may not achieve the tolerable deviation rate at the acceptable risk of assessing control risk too low.
• D) no inferences can be drawn from the sample.

Identify and interpret differential, sunk, and opportunity costs in decision-making.

Utilize the standard cost formula for total, fixed, and variable costs.

Distinguish between direct manufacturing costs, conversion costs, and manufacturing overhead in cost accounting.

Calculate and understand the contribution margin and its significance in cost-volume-profit analysis.