When Manufacturing Labour Affects Inventory Valuation,a Knowledgeable Manager Should Approve

question 53

Multiple Choice

When manufacturing labour affects inventory valuation,a knowledgeable manager should approve wage rate allocations to make sure that labour is distributed to the proper accounts.Which of the following controls helps to prevent error in the resulting job costing?

• A)comparison of wage rates to the authorized payroll master file
• B)independent comparison of the approved amounts to the data entered
• C)continuity check of the payroll cheque numbers issued
• D)reconciliation of gross pay on the payroll register with gross pay according to the payroll master file

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Definitions:

Autonomous Consumption

The level of consumption that occurs when income is zero, representing the amount that needs to be consumed to sustain a basic standard of living.

Disposable Income

The financial pot allocated for households to manage their savings and expenditures after income tax deductions.

Autonomous Consumption

The level of consumption spending that occurs when income is zero, representing the expenditures that consumers must make even when they have no income.

Disposable Income

Households' budget for spending and savings after the necessary income taxes have been deducted.