Chance Variations in Sampling Due to the Elements Included in the Sample

question 10

Short Answer

Chance variations in sampling due to the elements included in the sample are called ____________________ error.

Understand the classification and normal balances of different accounts.

Identify source documents in the accounting process and their importance.

Understand the functionality and application of the Tornado Chart in sensitivity analysis within Crystal Ball.

Recognize how to interpret forecast charts for making probabilistic assessments about future values such as net profit and NPV (Net Present Value).

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Definitions:

Activity Declines

A reduction in the level of operations, production, or business activities.

Activity Variance

measures the difference between the actual costs incurred and the budgeted costs based on the actual level of activity.

Actual Revenue

The real income that a company receives from its business activities, measured over a specific period.

Static Planning Budget

A budget for a specific amount of sales or production that does not change as volume changes.