Random Selection Involves

question 33

Multiple Choice

Random selection involves:

• A)the selection of a sample without the use of a methodical technique
• B)the selection of a sample that is free from bias and where each item in a population has an equal chance of selection
• C)dividing a population into groups of sampling units with similar characteristics
• D)the selection of items that an auditor believes should be included in their sample for testing

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Definitions:

Assembly Department

A division within a manufacturing facility where parts are put together to make a final product.

Cost Reconciliation Report

A document summarizing the costs in a production process, comparing expected costs to actual costs, and explaining differences or variances.

Weighted-Average Method

A cost accounting method used to calculate the cost per unit of inventory by considering the weighted average of the costs of the items available for sale.

Total Cost Accounted For

The comprehensive total of all costs recorded and allocated for a specific purpose or project.