The Hamster Stop Has $93,650 in the Accrued Payroll Account

question 8

Essay

The Hamster Stop has $93,650 in the Accrued Payroll account. Hamster's weekly payroll is $156,000 and the accrual represents payroll for 3 days. If controls are strong, determine whether additional audit work should be performed on this account.

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Definitions:

Service Department Expenses

Costs incurred by the departments that support the production or operation departments but do not directly contribute to the production of goods.

Departmental Income Statements

Financial statements that report the revenues, costs, and income for individual departments within a company.

Investment Center Managers

Personnel responsible for overseeing an investment center, which is a division or unit within an organization judged on its profitability and return on investment.

Performance Measures

Quantitative or qualitative gauges used to compare, track, and assess the effectiveness or productivity of different aspects of an organization.