Population Parameters Are Difficult to Calculate Due to

question 20

Multiple Choice

Population parameters are difficult to calculate due to

• A) cost prohibitions on data collection.
• B) the infeasibility of collecting data on the entire population.
• C) the fact that samples are difficult to draw due to the nature of the data.
• D) both cost prohibitions on data collection and the infeasibility of collecting data on the entire population.

---

Definitions:

Contribution Approach

A managerial accounting method that separates fixed costs from variable costs to determine the contribution margin per unit and overall contribution towards fixed costs and profits.

Differential Cost

The difference in total cost that will result from selecting one alternative over another.

Contribution Margin

The difference between sales revenue and variable costs, indicating the amount available to cover fixed costs and generate profit.

Variable Administrative Expenses

Expenses within the administration sector that fluctuate with the level of business activity, like sales commissions.