All of the Following Are Advantages of the Test Data

question 26

Multiple Choice

All of the following are advantages of the test data technique except

• A)auditors need minimal computer expertise to use this method
• B)this method causes minimal disruption to the firm's operations
• C)the test data is easily compiled
• D)the auditor obtains explicit evidence concerning application functions

---

Definitions:

Plant Size

The scale or capacity of a factory or production facility, often measured in terms of productive capability or physical dimensions.

Diseconomies of Scale

An economic concept where increasing production results in higher per unit costs.

Long-run Average Total Cost

The average cost per unit of output over the long term, where all inputs are considered variable, allowing firms to adjust all factors of production.

Plant Sizes

The physical capacity or scale of a manufacturing facility, which can influence production volume, efficiency, and cost.