When Testing a Company's Cost Accounting System,the Auditor Uses Procedures

question 6

Multiple Choice

When testing a company's cost accounting system,the auditor uses procedures that are primarily designed to determine that

• A)Quantities on hand have been computed based on acceptable cost accounting techniques that reasonably approximate actual quantities on hand.
• B)Physical inventories agree substantially with book inventories.
• C)The system is in accordance with generally accepted accounting principles and is functioning as planned.
• D)Costs have been properly assigned to finished goods,work-in-process,and cost of goods sold.

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Definitions:

Descriptive Measure

Statistical calculations that summarize or describe characteristics of a data set, including measures like mean, median, mode, and range.

Sample

A Sample refers to a subset of a population used in statistical analysis, mathematically selected to estimate characteristics of the whole population.

Polyamides

A type of polymer made up of repeating units linked by amide bonds, commonly found in materials like nylon.

Crystalline Polymers

Polymers characterized by a regular, ordered arrangement of molecules in a lattice structure, leading to distinct melting points and high degrees of strength and transparency.