When a Tax Auditor Randomly Selects 20 Accounts from All

question 27

Multiple Choice

When a tax auditor randomly selects 20 accounts from all the accounts of a business to check for accuracy, she has selected

• A) a sample from a population.
• B) a census.
• C) a convenience sample.
• D) a biased sample.
• E) a stratified sample.

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Definitions:

Inferior Materials

Materials of lower quality than standard, which may affect the quality of finished goods and potentially reduce manufacturing costs.

Budgeted Unit Sales

The projected quantity of products a company expects to sell over a certain period, based on budgeting processes.

Budgeted Cost

An estimated financial amount allocated for a specific purpose, project, or time period.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for more accurate budgeting and performance evaluation.