In Testing Account Balances,haphazard Sampling Is an Acceptable Method of Sampling

question 17

Multiple Choice

In testing account balances,haphazard sampling is an acceptable method of sampling provided the auditor believes the sample to be which of the following?

• A)Statistically sound.
• B)Representative of the population.
• C)Representative of the sample.
• D)In the upper stratum.

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Definitions:

Standard Cost Variances

The differences between actual costs incurred and the standard costs that were expected or budgeted, used for management control and analysis.

Cost of Goods Sold

Costs directly linked to the creation of goods sold by a business, encompassing materials and labor.

Raw Materials Inventory

The total cost of all the materials that are used in the production of goods but have not yet been transformed into finished products.

Raw Materials Purchases

Raw Materials Purchases involve the acquisition of basic inputs needed to manufacture goods or provide services, a crucial component of production costs.