In Order to Estimate a Parameter (Such as the Mean)

question 23

Multiple Choice

In order to estimate a parameter (such as the mean) of a population you would need which of the following?

• A) sample
• B) population
• C) census
• D) cluster
• E) pilot test

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Definitions:

Unfavorable Variances

Situations where actual costs are higher than planned or budgeted costs, or actual revenue is lower than expected.

Management By Exception

A management strategy where only significant deviations from planned results are brought to the attention of management, focusing efforts on areas that are not performing as expected.

Standard Costs

Preset costs established for the manufacture of a product, including direct materials, direct labor, and overhead expenses, against which actual costs are compared.

Fixed Overhead Cost Variance

The difference between the budgeted fixed overhead costs and the actual fixed overhead incurred.