Which of the Following Best Describes the Distinguishing Feature of Statistical

question 28

Multiple Choice

Which of the following best describes the distinguishing feature of statistical sampling?

• A) It requires the examination of a smaller number of supporting documents.
• B) It provides a means for measuring mathematically the degree of uncertainty that results from examining only part of a population.
• C) It reduces the problems associated with the auditor's judgment concerning materiality.
• D) It is evaluated in terms of two parameters: statistical mean and random selection.

---

Definitions:

Job A496

This is a reference to a specific task, project, or work order within a job costing system, identified by the code A496.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to individual products or job orders, based on a formula that estimates the costs.

Machine-Hours

Machine-hours refer to the total time that machinery is operated within a specific period, used as a basis for allocating manufacturing overhead to products.

Variable Manufacturing Overhead

The part of manufacturing overhead expenses that directly fluctuates in relation to the volume of production.