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Describe two tests that an auditor would perform to ensure that the disaster recovery plan is adequate.
Units of Production
A method of depreciation that allocates the cost of an asset over its useful life based on the number of units it produces.
Departmental Overhead Rates
Specific overhead rates calculated for each department within a company, facilitating more accurate cost allocation.
Direct Labor Hours
The total number of working hours spent by employees directly involved in the production of goods or services.
Machine Hours
A measure of the amount of time a machine is operated, used in manufacturing to allocate costs to products based on machine usage.
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