A Sample of Positive Confirmations Is Mailed for Material Accounts

question 62

Multiple Choice

A sample of positive confirmations is mailed for material accounts receivable balances.Frequently there is a lack of response.Which of the following is not an acceptable alternative procedure?

• A)Subsequent collection.
• B)Inquiry of management.
• C)Mailing second and third confirmations.
• D)Examination of supporting documents.

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Definitions:

Activity-Based Costing

A method in cost accounting that assigns costs to products and services based on the activities involved in their production or delivery.

Activity Rates

Rates used in activity-based costing to assign overhead costs to products or services, based on the activities that drive those costs.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing more accurate cost information.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing detailed information on where and how costs are incurred.