Analytical Procedures Are Used in the Overall Review for All

question 5

Multiple Choice

Analytical procedures are used in the overall review for all of these reasons except:

• A)to identify contingent liabilities.
• B)to corroborate conclusions formed during the audit.
• C)to gain assurance that the company will remain a going concern.
• D)to assist in arriving at the overall conclusion that the financial information is consistent with the knowledge of the business.

---

Definitions:

Activity-based Costing

An accounting method that assigns costs to products or services based on the activities they require, aiming for more accurate cost information.

Activity-based Costing

A costing methodology that assigns overhead and indirect costs to specific activities, helping to more accurately determine the cost of products or services.

Customer Margin

The profit margin attributed to a particular customer, calculated by subtracting the costs associated with serving that customer from the revenue generated.

Activity-based Costing

Activity-based costing is a more precise method of product costing that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption.