Management Assertions Are

question 60

Multiple Choice

Management assertions are

• A)directly related to auditing standards.
• B)directly related to accounting standards.
• C)indirectly related to auditing standards.
• D)indirectly related to accounting standards.

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Definitions:

Plantwide Overhead Rate Method

A method of allocating manufacturing overhead costs to products based on a single, plant-wide rate, often using direct labor hours or machine hours as the allocation base.

Cost Objects

Any item for which a separate measurement of costs is desired; examples include a product, a service, a project, or a customer.

ABC

Can refer to Activity-Based Costing, a method of assigning costs to products or services based on the resources they consume.

Activities

In a business context, activities refer to the various tasks, operations or functions performed within the organization to achieve its objectives.