Haphazard Sampling Is an Acceptable Method of Sampling Provided the Auditor

question 53

Multiple Choice

Haphazard sampling is an acceptable method of sampling provided the auditor believes the sample to be

• A)statistically sound.
• B)representative of the population.
• C)representative of the sample.
• D)in the upper stratum.

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Definitions:

Lawn-mowing

The process of cutting or trimming the grass in a yard or field to maintain a neat and uniform appearance.

Variable Costs

Expenses that change in proportion to the amount of goods or services produced, like labor and materials.

Profit-maximizing Output

The point of production where a company reaches its maximum profit, occurring when marginal cost matches marginal revenue.

Marginal Cost

The cost of producing one additional unit of a product, highlighting the concept of incremental cost in production.