Which One of the Following Analytical Procedures Would Be Most

question 45

Multiple Choice

Which one of the following analytical procedures would be most useful in alerting the auditor to the possibility of obsolete inventory?

• A)Compare gross margin percentage with previous years'.
• B)Compare unit costs of inventory with previous years'.
• C)Compare inventory turnover ratio with previous years'.
• D)Compare current year manufacturing costs with previous years'.

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Definitions:

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The Texas boundary disputes involved disagreements over the territorial limits of Texas, significantly those with Mexico, before and after Texas became a U.S. state in 1845.

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A system in which individuals are owned by others, deprived of personal freedom, and forced to perform labor or services without compensation.

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The legal and political authority granted to a country's government to conduct and manage military operations and declare war.