Which of the Following Is Not a Way Management Obtains

question 87

Multiple Choice

Which of the following is not a way management obtains evidence regarding the effectiveness of internal control over the accounting system?

• A)Performing a walkthrough of the accounting system.
• B)Making inquiries of banks and attorneys.
• C)Reviewing system flowcharts.
• D)Taking plant and operational tours.

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Definitions:

Multiple Production

A manufacturing strategy involving the concurrent production of several items or product lines in a single facility.

Direct Labor Hours

The total hours worked directly on producing goods, an important factor in costing and efficiency analyses.

Factory Overhead

All indirect costs associated with manufacturing a product, including utilities, maintenance, and salaries of non-direct labor.

Total Factory Overhead

Total factory overhead encompasses all indirect costs associated with manufacturing, including utilities, depreciation, and salaries for supervisory personnel, that cannot be directly traced to specific products.