Which of the Following Is Generally not true About Statistical

question 58

Multiple Choice

Which of the following is generally not true about statistical sampling as compared to nonstatistical sampling?

• A)Statistical samples are more representative of the population.
• B)Statistical sample plans involve additional costs of evaluation.
• C)Statistical sampling allows a more objective evaluation of sample results.
• D)Statistical sampling may assist the auditors in designing more efficient samples.

---

Definitions:

Variable Overhead Spending Variance

The difference between the actual variable overhead incurred and the standard variable overhead allocated to the actual production achieved.

Fixed Overhead Volume Variances

The difference between the budgeted and actual fixed overhead expenses, attributed to changes in production volume.

Standard Cost Data

Predetermined costs for materials, labor, and overhead that are used to measure and control actual production costs.

Capacity Percentage

A measure of the amount of productive capacity being used by a facility or entity, often expressed as a percentage.