Listed Below Are Examples of Matters That May Be Reportable

question 43

Multiple Choice

Listed below are examples of matters that may be reportable conditions. Indicate the nature of each event by using the following code letters:
Deficiencies in Internal Control Design
Failures in the Operation of Internal Control
-reconciliations not prepared or not prepared on a timely basis.

• A)Failures in the Operation of Internal Control
• B)A system fails to provide complete and accurate output consistent with the

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Definitions:

Work in Process

Inventory that includes all partially completed goods that are still in the process of production.

Equivalent Unit

A measurement used in process costing that quantifies the amount of materials or labor required to produce a single unit of output in mixed or partial stages of completion.

Materials Cost

Materials cost refers to the total expense of raw materials and components used in the manufacturing process of goods.

Equivalent Units

A term used in cost accounting to express the amount of work done during a period by components that were not finished, converting partially completed goods into the equivalent of fully completed units.