Generalised Audit Software Can Be Used to Perform Many Different

question 12

Multiple Choice

Generalised audit software can be used to perform many different kinds of tests. Which is NOT one of them?

• A) Review of accounts receivable balances for amounts over the credit limit
• B) Observing cash receipts processes
• C) Recalculating employees' net pay calculations
• D) Preparing general ledger trial balances

Identify different types of activity levels (unit-level, batch-level, product-level, facility-level).

Calculate predetermined overhead rates and activity rates.

Understand the shift of costs from high-volume to low-volume products using activity-based costing.

Recognize the role of activity-based costing in determining the costs of quality.

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Definitions:

Inconsistent Anchoring

A cognitive bias where individuals rely too heavily on an initial piece of information (anchor) to make subsequent judgments but inconsistently adjust away from that anchor.

Prospect Theory

A behavioral economic theory that describes the way people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known.

Matching Contribution

A contribution to a retirement plan, for instance, where an employer matches the employee's contribution up to a certain percentage.

Financial Well-Being

A state of being wherein an individual or family has control over their finances, can absorb a financial shock, is on track to meet financial goals, and has financial freedom to make choices that allow them to enjoy life.