Cost Accounting Systems. When Auditing a Manufacturing Concern, What Major Inquiries Might Be

question 101

Essay

Cost accounting systems.
When auditing a manufacturing concern, what major inquiries might be made by the auditor about the cost accounting system?

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Definitions:

Agency Agreement

A contract in which one party (the agent) agrees to act on behalf of another party (the principal) in particular transactions.

Binding

Refers to an agreement or contract that is legally enforceable by law.

Independent Agent

An individual or entity that operates independently from the parties they contract with, often acting on behalf of another in a business transaction.

Contract of Agency

A legal agreement where one party, the agent, is authorized to act on behalf of another, the principal, in business transactions.