Operational Audits Do Not Include Determining

question 76

Multiple Choice

Operational audits do not include determining

• A)whether the entity is acquiring,practicing,and using resources economically and efficiently.
• B)review of control systems to ensure compliance with company policies.
• C)the causes of inefficiencies or uneconomical practices.
• D)whether the department's goals are aligned with the organization's goals.

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Definitions:

Overapplied

A situation in cost accounting where the allocated overhead costs exceed the actual overhead costs.

Finished Goods Inventory

The stock of completed products that are ready to be sold.

Underapplied

Describes the situation where the allocated manufacturing overhead is less than the actual manufacturing overhead incurred.

Overapplied

A situation in which the allocated manufacturing overhead cost is more than the actual overhead cost incurred.