The Applicable Financial Reporting Framework Allows the Audit Client to Determine

question 81

Multiple Choice

The applicable financial reporting framework allows the audit client to determine both the cost and market value of inventory.Select the correct item(s) from the following list regarding these determinations:

• A)The client must use FIFO to determine the cost of inventory at year-end.With FIFO,the client determines the cost of good sold using the earliest inventory items purchased.
• B)The client must use FIFO to determine the cost of inventory at year-end.With FIFO,the client determines the cost of good sold using the latest inventory items purchased.
• C)The client can choose to use either FIFO or average cost to determine the cost of inventory at year-end (in the U.S.LIFO can also be used to determine the cost of inventory).
• D)The client determines the market value of inventory by estimating the amount the sales price of inventory at the end of the year.

Analyze the effects of minimum wage laws on employment, wage rates, and the labor market.

Comprehend the impact of restrictive labor supply and demand strategies by unions and their consequences.

Identify the role and outcomes of legislative and non-legislative factors affecting labor markets such as minimum wage and occupational licensing.

Understand the relationship between wage differentials and factors such as human capital, job characteristics, and labor market competitiveness.

---

Definitions:

Business

The practice of making one's living by engaging in commerce, including the operation of companies and the buying and selling of goods and services.

Ethical Activities

Involves actions and practices that follow moral principles and standards in a professional context.

Identify

The act of recognizing or establishing the nature or characteristics of something.

Organization

A structured group of individuals working together to achieve collective goals through coordinated activities.