Which One of the Following Assertions Is Not Made by Management

question 35

Multiple Choice

Which one of the following assertions is not made by management in placing an item in the financial statements?

• A) existence or occurrence
• B) direct controls
• C) rights and obligations
• D) presentation and disclosure
• E) completeness

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Definitions:

Direct Labour Hour

A measure of labor directly involved in manufacturing or production, calculated by the amount of time workers spend on specific tasks.

Fixed Overhead

Costs that do not change with the level of production or sales activities, such as rent, salaries, and insurance.

Budget Variance

The difference between the budgeted or planned amounts and the actual amounts incurred.

Standard Cost

A predetermined cost of manufacturing a single unit or a number of product units during a specific period under normal conditions.