Significant Deficiencies and Material Weaknesses in Internal Control of a Public

question 62

Multiple Choice

Significant deficiencies and material weaknesses in internal control of a public company must be reported in writing to which of the following?

• A)Public Company Accounting Oversight Board
• B)Members of management who are responsible for the related area of the company
• C)Audit committee of the company's board of directors and to management
• D)AICPA

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Definitions:

Step-fixed Costs

Costs that remain constant for a certain level of production or activity, but can change to a different fixed amount when a certain threshold is crossed.

Variable Costs

Costs that vary directly with the level of production or output.

Absorption Costing

An accounting method that includes all manufacturing costs—direct materials, labor, and both variable and fixed overhead—as part of the cost of a finished product.

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overheads - in the cost of a product.