Which of the Following Would Be Used on a Review

question 5

Multiple Choice

Which of the following would be used on a review engagement?

• A) Examination of board minutes.
• B) Confirmation of cash and accounts receivable.
• C) Comparison of current year to prior year account balances.
• D) Recalculation of depreciation expense.

---

Definitions:

Variable Cost

Costs that change in proportion to the level of goods or services that a business produces.

Relevant Costs

Costs that are directly related to a specific management decision and that will change as a result of that decision.

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not affect future business decisions.

Alternatives

Different options or strategies available for achieving a goal or solving a problem, often considered during decision-making processes.