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:

Income Statement

A financial statement that shows a company's financial performance, including revenues, expenses, and profits over a specific period.

Current Liability

Obligations or debts that a company must pay within a year from the date of the balance sheet.

Balance Sheet

A balance sheet is a financial statement that provides a snapshot of a company's financial position, showing assets, liabilities, and equity at a specific point in time.

Deduction

An amount that is allowed to be subtracted from gross income in order to reduce taxable income, thus lowering the overall tax liability.