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The Use of Random Work Sampling for Cost Analysis and Control

A. C. Rosander, H. E. Guterman and A. J. McKeon
Journal of the American Statistical Association
Vol. 53, No. 282 (Jun., 1958), pp. 382-397
DOI: 10.2307/2281862
Stable URL: http://www.jstor.org/stable/2281862
Page Count: 16
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The Use of Random Work Sampling for Cost Analysis and Control
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Abstract

Random time sampling of activities (work sampling) is successfully applied to everyone in a division of 350 employees for the purpose of budget planning and cost control. To insure this success several technical and administrative problems had to be solved, especially those relating to the design and management of the sample. An appropriate model is described together with methods of sampling, estimating, and calculating sampling errors. Bias is reduced by using an employee instruction booklet, anonymous reporting, and by classifying and coding activities. Cost of the plan is reduced by using a stratified cluster sample, a check-type data sheet, a simplified method of estimation, and by calling random times by telephone.

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