The Completeness of Computer Generated Sales Figures Can Be Tested

question 40

Multiple Choice

The completeness of computer generated sales figures can be tested by comparing the number of items listed on the daily sales report with the number of items billed on the actual invoices.This process uses:

• A)Self-checking numbers.
• B)Control totals.
• C)Validity tests.
• D)Process tracing data.

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Definitions:

Fixed Budget Variance

The difference between the actual incurred expenses and the expenses budgeted for a set period, under the assumption of fixed operational conditions.

Standard Costing System

An accounting system that assigns fixed costs for materials, labor, and overhead to the production of goods, facilitating budgeting and performance evaluation.

Direct Labour Hours

The total hours worked by employees directly involved in the manufacturing process, contributing to the transformation of raw materials into finished goods.

Unfavourable Variance

A financial term indicating that actual results are worse than expected or budgeted results, leading to a negative impact on profitability.