Auditors Use Evidence to Help Them Draw Conclusions

question 164

True/False

Auditors use evidence to help them draw conclusions.

---

Definitions:

Adjustment Costs

The costs associated with holding too little cash.

Carrying Costs

Expenses associated with holding or storing inventory, including warehousing, insurance, tax, and depreciation.

Shortage Costs

The costs associated with not having enough inventory on hand, which can include lost sales and customer dissatisfaction.