In the Planning Stage,analytical Procedures Are Used to ________

question 9

Multiple Choice

In the planning stage,analytical procedures are used to ________.

• A)assess overall reasonableness of the financial statements
• B)identify potential problem areas
• C)determine the mathematical correctness of the financial statements
• D)provide direct evidence about the balances in accounts

---

Definitions:

Resource Consumption

The amount of resources used during a process, such as raw materials, energy, or labor.

Activity Rate

The cost incurred per unit of activity, used in activity-based costing to allocate overhead costs to products.

Overhead Cost

Expenses related to the operation of a business that are not directly tied to a specific product or service, such as rent, utilities, and administrative salaries.

Activity Cost Pool

A grouping of all the costs related to a particular business activity, facilitating more accurate allocation of overhead costs to products or services.