Which of the Following Is FALSE

question 7

Multiple Choice

Which of the following is FALSE?

• A) It is not difficult to estimate the size and effects of nonsampling errors.
• B) Reduction of nonsampling error depends on improving method.
• C) Nonsampling errors are not as manageable as sampling errors.
• D) Nonsampling errors arise from weaknesses in research procedure. They are likely to increase with increases in the sample size.
• E) Nonsampling errors contribute more than sampling errors to total error in most surveys.

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Definitions:

Unfavorable Variance

A situation where actual costs exceed the standard or budgeted costs, often indicating inefficiencies or increased expenses.

Favorable Variance

A financial term indicating that actual costs were lower or revenues were higher than planned.

Budgeted Amount

The projected costs or revenues allocated to a specific activity or period, based on estimates.

Budget Ratcheting

The practice of setting future budget allocations based on the current period’s expenditures, discouraging under-spending in fear of budget cuts.