An Advantage of Using Statistical Over Nonstatistical Sampling Methods in Tests

question 65

Multiple Choice

An advantage of using statistical over nonstatistical sampling methods in tests of controls is that the statistical methods:

• A)afford greater assurance than a nonstatistical sample of equal size.
• B)provide an objective basis for quantitatively evaluating sample risks.
• C)can more easily convert the sample into a dual-purpose test useful for substantive testing.
• D)eliminate the need to use judgment in determining appropriate sample sizes.

Recognize the concepts of competitive advantage and how businesses achieve it through operational efficiencies.

Understand the principles of customer service management and its impact on business success.

Comprehend the role and management of supply chains and value chains in organizations.

Grasp the techniques of production efficiency, such as lean production and flexible manufacturing.

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Definitions:

International Zinc Cartel

An agreement among zinc producers to control zinc prices and production globally, often to manipulate market conditions.

Lower Output

Refers to a reduction in the quantity of goods or services produced by a company or sector.

Raise Prices

An action taken by sellers to increase the cost that buyers must pay for goods or services.

Joint Profits

The combined earnings or financial gains shared between two or more parties engaged in a business venture.