Abstract In recent years it has become increasingly evident that many managerial problems could be best handled by an integrated application of accounting and statistical knowledge. The actual integration of these two disciplines in the business world has been progressively increasing. Applications of statistical and sampling techniques have been made to a number of accounting problems. In the area of accounts receivable, applications have been made to the confirmation of receivables and to the aging of receivables. In contrast one of the first steps required in making a statistical application is the specification of the desired precision of the estimate and the level of reliability needed. Precision and reliability are the basis for the application of statistical sampling and these quantities must be stated by the accountant desiring the information. In another type of application statistical sampling was used in lieu of a cost accounting system. A large number of products were manufactured with the same machinery and same individuals during the day. A conventional cost accounting system would have been prohibitively expensive.
Cyert et al. (Fri,) studied this question.