Attribute Sampling Is Used in Which of the Following Situations

question 103

Multiple Choice

Attribute sampling is used in which of the following situations?

• A) Testing rates of deviations of controls.
• B) Testing the reasonableness of account balances.
• C) Need to estimate some amount.
• D) Both A and B.

---

Definitions:

Activity-Based Costing

A costing methodology that assigns costs to products and services based on the activities and resources that go into producing them.

Overhead Cost Per Unit

The indirect manufacturing costs allocated to each unit of product produced.

Departmental Overhead Rate

A rate used to allocate overhead costs to specific departments, calculated based on the relationship between indirect costs and activity level.

Own Allocation Base

Refers to the specific denominator that a company chooses to allocate indirect costs to different cost objects, based on their usage or benefit from those costs.