Which of the Following Most Likely Would Be an Advantage

question 29

Multiple Choice

Which of the following most likely would be an advantage in using classical variables sampling rather than monetary-unit sampling?

• A)An estimate of the standard deviation of the population's recorded amounts is not required.
• B)The auditor rarely needs the assistance of a computer program to design an efficient sample.
• C)Inclusion of zero and negative balances generally does not require special design considerations.
• D)Any amount that is individually significant is automatically identified and selected.

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Definitions:

Price Increase

Adjusting the selling price of goods or services upwards, often as a response to inflating costs or improving margin.

Useful Life

The period over which an asset is expected to be usable for its intended purpose, affecting depreciation calculations.

Operating Costs

Expenses associated with the day-to-day functioning of a business, excluding costs related to production.

Service Hours

A measure of the time that employees or machines are actively providing services, often used in allocating service costs or assessing productivity.