Which of the Following Is an Auditor least Likely to Consider

question 49

Multiple Choice

Which of the following is an auditor least likely to consider a departure from U.S.generally accepted accounting principles?

• A)Valuing inventory at cost.
• B)Including in inventory items that are consigned out to vendors,but not yet sold.
• C)Using standard cost as the measure of inventory cost.
• D)Including in inventory items shipped subsequent to year-end,but for which valid orders did exist at year-end.

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Definitions:

Optimal Efficiency

A condition where resources are allocated in the most efficient manner, maximizing output without wasting resources.

Operating

Pertains to the day-to-day running or functioning of businesses, systems, or machines.

Output

The quantity of goods or services produced in a given period by a firm, industry, or country.

Monopolies

Market situations where a single supplier dominates the supply of a particular good or service, limiting competition and potentially leading to higher prices and reduced innovation.