Which One of the Following Will Provide Auditing Standards of Public

question 81

Multiple Choice

Which one of the following will provide auditing standards of public companies?

• A)GAO
• B)AICPA
• C)GAAP
• D)PCAOB

---

Definitions:

Variable Costing

A cost accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs and treats fixed manufacturing overhead as a period expense.

Net Operating Income

The profit a company makes after deducting operating expenses but before interest and taxes from its total revenue.

Direct Labor Cost

The expense associated with employees who physically convert raw materials into the company's products; considered a variable cost.

Absorption Costing

A method of inventory costing that includes all manufacturing costs, both variable and fixed, in the cost of a product.