The Internal Auditing Staff of a Local Manufacturing Company Performs

question 102

Multiple Choice

The internal auditing staff of a local manufacturing company performs a sample audit each quarter to estimate the proportion of accounts that are current (between 0 and 60 days after billing) .The historical records show that over the past 8 years,70 percent of the accounts have been current.The sample size needed in order to be 99% confident that the sample proportion of the current customer accounts is within .03 of the true proportion of all current accounts for this company would be _____.

• A)1842
• B)1549
• C)897
• D)632
• E)1267

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Definitions:

Process Cost Accounting System

An accounting system used to track and allocate costs of production by process or department, commonly employed in manufacturing environments with continuous, homogeneous outputs.

Product Quantity

The total number of units of a product that are produced, available for sale, or sold at a given time.

Factory

A building or set of buildings where goods are manufactured or assembled chiefly by machine.

Process Cost Accounting

An accounting method that accumulates costs for each process or department within a manufacturing environment.