Which of the Following Is a Procedure Designed to Test

question 20

Multiple Choice

Which of the following is a procedure designed to test for monetary errors or irregularities directly affecting the correctness of financial statement balances?

• A) substantive test
• B) monetary-unit sampling test
• C) test of control
• D) test of attributes

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Definitions:

Variable Manufacturing Overhead

Costs in manufacturing that vary with the level of production output, such as utilities or materials used in production.

Efficiency

The ratio of the output gained from a system to the input used, often used to evaluate the performance of a business operation or machine.

Standard Price

A pre-determined cost that is often used in budgeting and financial planning, serving as a benchmark for performance evaluation.

Direct Materials

Materials that become an integral part of a finished product and whose costs can be conveniently traced to it.