Which of the Following Is Not a Part of the Auditors

question 59

Multiple Choice

Which of the following is not a part of the auditors' responsibility when a client's count of its inventory?

• A)Evaluate condition of inventory.
• B)Determine which counts they will make and which counts the client will make.
• C)Observe compliance with management's instructions for the count..
• D)Make some test counts.

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales volume, such as rent, salaries, and insurance premiums.

Mixed Costs

Expenses that have both fixed and variable components, changing in total with the level of activity but not in proportion.

Sunk Costs

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

Mixed Cost

A cost that contains both variable and fixed cost components, changing in total with volume but remaining constant per unit.