Which of the Following Approaches Would Not Be Acceptable in Estimating

question 69

Multiple Choice

Which of the following approaches would not be acceptable in estimating the population standard deviation?

• A) use the exact amount found in last year's audit.
• B) use available book values.
• C) adjust the amount found last year based on changed conditions.
• D) use the rate found in a preliminary sample of approximately five to ten items.
• E) use the rate found in a preliminary sample of approximately thirty to fifty items.

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Definitions:

Margin

The difference between the selling price of a product or service and the cost of producing or purchasing it, expressed as a percentage of sales.

Delivery Cycle Time

The elapsed time from when a customer order is received until the finished goods are shipped.

Division's Turnover

The total sales generated by a specific division of a company within a given period.

Combined Margin

A profitability measure that combines various margin ratios, such as gross margin and operating margin, to give a comprehensive view of a company's overall profitability.