When Testing a Company's Cost Accounting System, the Auditor Uses

question 8

Multiple Choice

When testing a company's cost accounting system, the auditor uses procedures that are primarily designed to determine that

• A)quantities on hand have been computed based on acceptable cost accounting techniques that reasonably approximate actual quantities on hand.
• B)physical inventories agree substantially with book inventories.
• C)the system is in accordance with generally accepted accounting principles and is functioning as planned.
• D)costs have been properly assigned to finished goods, work-in-process, and cost of goods sold.

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