The Auditor in Making Inquiries Regarding the Standard Cost Systems

question 42

Multiple Choice

The auditor in making inquiries regarding the standard cost systems normally does not make which of the following inquiries?

• A)The method for developing standard costs.
• B)The method for identifying components of overhead and of allocating overhead to products.
• C)The method for identifying sales cutoff.
• D)The method used for identifying variances,following up on their causes,and allocating them to inventory and cost of goods sold.

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Definitions:

Social Class

A division of a society based on social and economic status, affecting people's lifestyles, education, and occupational opportunities.

Wage Earners

Individuals who receive a regular wage or salary for their employment, often contrasting with those who earn income through investments or entrepreneurship.

Labor Protest

Collective action by workers, often in the form of strikes or demonstrations, to demand better pay, conditions, or rights from their employers.

Population

The entirety of individuals inhabiting an area or making up a particular group.