You Are Concerned About Whether All Sales Have Occurred

question 21

Multiple Choice

You are concerned about whether all sales have occurred.The procedure that will be most effective in verifying this assertion is:

• A)selecting a sample of invoices and vouching them to delivery dockets.
• B)selecting a sample of customers' orders and tracing them to delivery dockets.
• C)checking the sequence of delivery dockets.
• D)selecting a sample of delivery dockets and tracing them to invoices.

Comprehend the role of conversion cost in accounting and its components.

Recognize the classification of various operational costs including selling, administrative, and manufacturing overhead.

Understand the concepts of opportunity, fixed, variable, and step-variable costs and how they behave.

Identify the cost behavior in terms of variable and fixed costs and the impact of activity level changes on these costs.