Pujols,CPA,performed a Nonstatistical Sampling Plan to Examine the Inventory Balances

question 14

Multiple Choice

Pujols,CPA,performed a nonstatistical sampling plan to examine the inventory balances of Wieserbud Brewing Inc.,and estimated the account balance based on the ratio of audited value to recorded balances.He audited 120 items from a sample and found an audited value of $24,600.The sample had a recorded value of $30,000.If the entire inventory contained 2,400 items and the total recorded value of the inventory was $480,000,the estimated account balance using nonstatistical methods is

• A) $393,600.
• B) $474,500.
• C) $480,000.
• D) $500,000.

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Definitions:

Variable Sample Size

A sampling method where the size of the sample can change based on the experiment or study being conducted.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values.

Samples

A subset of a population that is used for analyzing and drawing conclusions about the entire population.