The Major Concern When Using Nonfinancial Data in Analytical Procedures

question 91

Multiple Choice

The major concern when using nonfinancial data in analytical procedures is the:

• A)accuracy of the nonfinancial data.
• B)source of the nonfinancial data.
• C)type of nonfinancial data.
• D)presence of multiple sources of nonfinancial data.

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Definitions:

Overhead

The ongoing administrative, operational, or general business expenses that are not directly tied to the production of goods or services.

Depreciation Costs

The allocation of the cost of a tangible asset over its useful life.

Relevant Costs

All costs that vary with the consequence of a decision.

Irrelevant Costs

Costs that will not be affected by a decision and thus should not influence the decision-making process.