Which of the Following Is an Example of the Type

question 83

Multiple Choice

Which of the following is an example of the type of analytical procedures that an auditor would use for inventory?

• A)Number of day's sales in receivables compared to industry averages.
• B)Inventory turnover for the previous five years.
• C)Days outstanding in accounts payable.
• D)Salaries of marketing personnel as a percent of total inventory.

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Definitions:

Standardization

The making of identical interchangeable components or products.

Creativity

The ability to produce original and unusual ideas, or to make something new or imaginative.