Which of the Following Situations Is True with Respect to Sampling

question 26

Multiple Choice

Which of the following situations is true with respect to sampling?

• A)Sampling results in a tradeoff of efficiency for greater effectiveness.
• B)Sampling is most useful when the need for exact information is very important.
• C)A well-designed sample can appropriately limit the exposure to nonsampling risk.
• D)Sampling is more appropriate when the number of items comprising the population is relatively large.

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Definitions:

Service Department Costs

The expenses incurred by support departments within a company that do not directly contribute to profit but provide necessary services.

Operating Departments

Sections or divisions within a business that are responsible for carrying out its core operations, as opposed to support or administrative departments.

Direct Method

A way of preparing a cash flow statement where actual cash flows from operating activities are listed directly.

Service Department Costs

Expenses associated with departments that do not directly produce goods but provide support services, such as maintenance or security.