Which One of the Following Analytical Procedures Would Be Most

question 45

Multiple Choice

Which one of the following analytical procedures would be most helpful in alerting the auditor to the possibility of obsolete inventory?

• A) Compare current year manufacturing costs with previous years' costs.
• B) Compare gross margin percentage with previous years' percentages.
• C) Compare inventory turnover ratio with previous years' ratios.
• D) Compare unit costs of inventory with previous years' costs.

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Definitions:

Variable Ratio

A schedule of reinforcement where a response is rewarded after an unpredictable number of responses, enhancing motivation to respond.

Fixed Ratio

A schedule of reinforcement where a response is only rewarded after a specified number of responses. It is often used in behavioral psychology.

Variable Interval

A reinforcement schedule where rewards are given after unpredictable time intervals, leading to moderate but steady response rates.

Fixed Interval

In operant conditioning, a schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed.