For each one of the following financial ratios, indicate the formula and identify the audit significance.
Definitions:
Monthly Basis
Refers to any activity or calculation done or occurring every month.
Set-Up Costs
Expenses incurred to prepare and configure equipment or processes for production.
Activity-Based Costing
An approach to costing that recognizes organizational activities and distributes each activity's costs to every product and service, reflecting their real consumption.
High-Low Method
A technique used in cost accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.
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