(iv). Population data are data arising as a result of investigating a group of people or
　　Objects.
　　Which of the statements are true?
　　A.(i)and(ii)only
　　B.(ii)and(iii)only
　　C.(ii)and(iv)only
　　D.(iii)and(iv)only
　　Solution is D
　　It is primary data that is collected for a specific purpose so (i) is false. Continuous data can take on any value so (ii) is false. Both (iii) and (iv) are true.
　　Example 2:
　　Which of the following statements are not true?
　　I If a sample is selected using random sampling, it will be free from bias.
　　II A sampling frame is a numbered list of all items in a sample.
　　III In cluster sampling there is very little potential for bias.
　　IV In quota sampling, investigators are told to interview all the people they meet
　　Up to a certain quota.
　　A I, II, III and IV
　　B I, II and III
　　Direct cost 6
　　Production overhead (Note) 1
　　Total production cost 7
　　Administration Overhead 1
　　Selling and distribution Overhead 1
　　Total cost 9
　　Note: Production overhead includes indirect material, indirect labor and indirect expense.
　　3.2 Analyzing costs:
　　Cost objects: a cost object is any activity for which a separate measurement of cost is undertaken.
　　Cost units: a cost unit is a unit of product or service in relation to which costs are ascertained
　　Responsibility centers: a department whose performance is the direct responsibility of a specific manager.
　　The main responsibility centers are:
　　· Cost center – the performance of a cost center manager is judged on the extent to which cost targets have been achieved.
　　· Revenue center – Within an organization, this is a centre or activity that earns sales revenue. And whose manager is responsible for the revenue earned but not for the costs incurred.
　　· Profit center – a part of the business whose manager is responsible and accountable for both costs and revenue. The performance of a profit center manager is measured in terms of the profit made by the centre.
　　· Investment centre – a profit centre with additional responsibility for investment and possibly also for financing, and whose performance is measured by its return on capital employed.
　　(ROCE).
　　Cost equations:
　　Equation of a straight line
　　The equation of a straight line is a linear function and is represented by the following equation:
　　Y = a + bx
　　Total cost = Total FC + Total VC
　　Y= a + bx
　　· Y = total cost
　　· a = the fixed cost for the given period
　　· b = the variable cost per unit
　　· x = the number of units of activity
　　Cost graphs
　　Cost and revenue $
　　C II and III
　　D II only
　　Solution is C
　　A sampling frame is a numbered list of all items in a population (not a sample)
　　Cluster sampling involves selecting one definable subsection of the population which therefore makes the potential for bias considerable.