Which One of the Following Types of Audits Would Be

question 58

Multiple Choice

Which one of the following types of audits would be most likely to focus on objectives related to the efficient use of resources?

• A)Compliance audit
• B)Information systems audit
• C)Independent audit
• D)Operational audit

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Definitions:

Factory Overhead

All manufacturing costs that are not directly associated with the cost of raw materials or direct labor, often including costs related to maintaining factory operations.

Direct Materials

Raw materials directly used in the manufacturing process of a product, easily traceable and integral to the finished good.

Direct Labor

The wages and other costs for labor that is directly involved in the manufacturing or production of goods or services.

Operating Income

A measure of a company's profit excluding one-off items and costs not directly related to its core operations, such as interest and taxes.