Which of the Following Statements Is Most Correct with Respect

question 129

Multiple Choice

Which of the following statements is most correct with respect to the evaluation of nonprobabilistic sample results?

• A) It is acceptable to make nonprobabilistic evaluations only when probabilistic sample selection is used.
• B) It is acceptable to make nonprobabilistic evaluations only if the auditor cannot quantify sampling risk.
• C) It is never acceptable to evaluate a nonprobabilistic sample using statistical methods.
• D) All of the above are correct.

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Definitions:

Direct Materials Cost

The expense associated with the raw materials directly used in the manufacture of a product.

Employee Wages

Compensation paid to employees for their labor or services, typically calculated on an hourly, daily, or piecework basis.

Total Product Cost

The sum of all costs directly or indirectly related to creating a product, including material, labor, and overhead expenses.

Factory Overhead Cost

Indirect costs associated with manufacturing that are not directly tied to a specific product, such as utilities, maintenance, and factory equipment depreciation.