In Forming a Team to Investigate an Organization's Potential Adoption

question 222

Multiple Choice

In forming a team to investigate an organization's potential adoption of an activity-based costing system, the best reason to include an internal auditor on the team would be the auditor's knowledge of:

• A) Activities and cost drivers.
• B) Information processing procedures.
• C) Current product cost structures.
• D) Internal control alternatives.

---

Definitions:

Transactions

The act of conducting business, especially buying or selling goods, services, or assets.

Strengthens

To make or become stronger, more forceful, or more effective.

C$

Symbol representing the Canadian Dollar, the currency of Canada.

US$

The US dollar, symbolized as USD, is the official currency of the United States of America and used as a benchmark in the global economy.