Which of the Following Would Provide the Best Evidence of Compliance

question 317

Multiple Choice

Which of the following would provide the best evidence of compliance with an airline's standard of having aircraft refueled and cleaned within a specified time of arrival at an airport?

• A) Vendor fuel invoices that have been reconciled to inventory records.
• B) Time cards completed by aircraft cleaning and fueling crews.
• C) Observation of selected aircraft while they are being refueled and cleaned.
• D) Comparison of the standard hourly labor costs for cleaning and fueling personnel with actual labor charges.

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Definitions:

Process Costing

A costing method used in manufacturing where costs are allocated to batches or process levels, suitable for standardized products.

Work in Process Inventory

The value of unfinished goods in the production process at a specific point in time.

Costs Added

Additional expenses incurred during the production or operational process, contributing to the total cost of a product or service.

Process Inventory

Goods in various stages of production within a company, excluding raw materials and finished products.