Auditing Procedures Deemed Particularly Applicable to Audits of State and Local

question 53

Multiple Choice

Auditing procedures deemed particularly applicable to audits of state and local governments by independent CPAs are published in:

• A) The GASB codification.
• B) AICPA audit and accounting guides.
• C) GASB implementation guides.
• D) All of these choices are correct.

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Definitions:

Absorption Costing

Absorption costing is an accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.

Absorption Costing

An accounting method that includes all manufacturing costs (both variable and fixed) in the cost of a product.

Unit Product Cost

The calculated cost associated with producing a single unit of product, including direct materials, labor, and overhead.

Absorption Costing

An accounting practice where the cost of a product is calculated by including all expenses from manufacturing, like direct materials, direct labor, and both variable and fixed overheads.