Which of the Following Are Management Assertions About the Accounts

question 84

Multiple Choice

Which of the following are management assertions about the accounts in cash and investment process?

• A)existence or occurrence - for classes of transactions
• B)completeness - for account balances
• C)valuation and allocation - for classes of transactions
• D)rights and obligations - for both classes of transactions and account balances
• E)accuracy - for classes of transactions

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Definitions:

Variable Costing

An accounting method that includes only variable costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold and inventory valuation.

Absorption Costing

An accounting method that assigns all manufacturing costs, both variable and fixed, to products.

Special Order Decisions

These are considerations made by businesses to accept or decline an order from a customer that is not part of the company's standard line of production or services, often involving unique pricing or costs.

Short-Term Pricing

The strategy or approach to setting prices for goods or services with a focus on immediate or near-future objectives.