Which of the Following Would Not Be Classified as an Analytical

question 42

Multiple Choice

Which of the following would not be classified as an analytical procedure?

• A)Benchmarking the company's profitability ratios against others in the industry
• B)Variance analysis of actual versus budgeted amounts for production
• C)Reperforming the client's depreciation expense using the client's accounting policies for capital expenditures made during the year
• D)Reconciling fixed asset dispositions with the fixed asset ledger

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Definitions:

Managerial Accounting

An accounting practice focused on providing financial information to managers for decision-making, planning, and controlling business operations.

Historical Perspective

A viewpoint that involves looking at current events or situations in the context of historical developments.

Non-Value-Added Activities

Activities that consume resources but do not add value for which customers are willing to pay.

Overhead Costs

General business costs not directly related to creating a product or service, such as rent, utilities, and insurance.