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ACCA Applied Knowledge · Management Accounting · Sampling methods

A cost accountant needs to know the average time taken to inspect each unit in a batch, where inspection involves destroying the unit being tested. Which is the main reason for using a sample rather than examining the whole population?

Sampling is needed because testing every unit would destroy the entire batch. Destructive testing makes a full census impractical and uneconomic. Sampling does not eliminate error and is not inherently more accurate than a census; it is simply the only feasible approach here.

  1. ATesting the whole population would destroy all the outputCorrect
  2. BA sample always removes sampling error
  3. CA census cannot be defined for a finite batch
  4. DSamples are always more accurate than a census

Explanation

With destructive testing, inspecting every unit would leave nothing to sell, so sampling is necessary. Sampling does not remove error, a census of a finite batch is definable, and a census is not less accurate in principle.

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