A Major Difficulty in the Verification of Inventory Cost Records

question 83

Multiple Choice

A major difficulty in the verification of inventory cost records for the purpose of inventory valuation is in determining the reasonableness of the:

• A)direct labor hourly rate.
• B)raw material per unit cost.
• C)manufacturing overhead costs.
• D)number of direct labor hours applied.

---

Definitions:

Treasury Note

Medium-term securities issued by the U.S. Treasury that mature in two to ten years and pay interest every six months.

Wall Street Journal

A leading financial and business news newspaper known for its comprehensive coverage of economic and market developments.