Suppose that an accountant for a bank notices a 5 percent reduction in profits for a certain quarter of operations. The accountant identifies four sources of increased costs that might account for this: increased salaries for some of the employees, increased utility costs, new computers for one of the departments, and increased real estate taxes. After further study, the accountant finds that each of these is responsible for a 1 percent reduction in profits, which adds up to a total of 4 percent. Unable to account for the final 1 percent loss, the accountant attributes it to embezzlement by one of the employees. What method did the accountant use in drawing this conclusion?
A) The method of agreement.
B) The joint method of agreement and difference.
C) The method of difference.
D) The method of residues.
E) The method of concomitant variation.

Question

Quizplus · Accepted Answer

The accountant used the method of residues, attributing the unexplained loss (the residue) to a cause not accounted for by the identified factors.

Suppose That an Accountant for a Bank Notices a 5