To Ensure Proper Authorization of Payroll Functions, Walters Selected All

question 59

Multiple Choice

  To ensure proper authorization of payroll functions, Walters selected all transactions during the last 5 days of each pay period to be included in the sample.

• A)unrestricted random (UR)
• B)systematic random (SR)
• C)haphazard (H)
• D)block (B)

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Definitions:

Direct Materials Price Variance

It measures the difference between the actual cost and the standard cost of direct materials used in production, indicating how effectively a company is purchasing its raw materials.

Actual Costs

The actual expenses incurred in the production or acquisition of goods and services, as opposed to estimated or standard costs.

Standard Cost

An estimated or predetermined cost of performing an operation or producing a good, used in budgeting and variance analysis.

Gourmet Cupcakes

High-quality, often uniquely flavored cupcakes made with fine ingredients and intricate designs, catering to a niche market.