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

question 28

Multiple Choice

Jeter,CPA,performed a nonstatistical sampling plan to examine the inventory balances of Big Apple Company and estimated the account balance based on the ratio of audited value to recorded balances.He audited 200 items from a sample and found an audited value of $36,000.The sample had a recorded balance of $40,000.If the entire inventory contained 3,000 items and the total recorded balance of the inventory was $500,000,the estimated account balance using nonstatistical estimation and projecting the error based on number of items examined is:

• A)$393,600.
• B)$474,500.
• C)$450,000.
• D)$540,000.

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Definitions:

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Green Marketing

Marketing efforts focused on promoting products or services based on their environmental benefits, often highlighting sustainability and eco-friendly practices.

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The obligations of an organization towards individuals or groups that have a stake in its operations and decisions, including employees, customers, and the community.

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A business philosophy suggesting that achieving organizational goals depends on knowing the needs and wants of target markets and delivering desired satisfactions better than competitors.