Which Statement Is False Regarding the Public Company Accounting Oversight

question 26

Multiple Choice

Which statement is false regarding the Public Company Accounting Oversight Board (PCAOB) ?

• A) Regulates audit standards and independent audit firms.
• B) Has five members appointed by the SEC.
• C) Allows all members to be accountants, past or present.
• D) Is under the oversight and enforcement of the SEC.
• E) Is funded by fees levied on all publicly traded companies.

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Definitions:

Backflush Costing

A simplified accounting method that applies costs to products after the completion of production, often used in just-in-time manufacturing systems.

Product Costing

The process of determining the total cost involved in creating a product, considering materials, labor, and overheads.

Job Order Costing

A cost accounting system that assigns manufacturing costs to an individual product or batches of products, typically used for custom orders or unique products.

Cost-Benefit Decision

The process of comparing the costs and benefits associated with a decision, project, or investment, to determine its feasibility or profitability.