Asset Impairment Describe What Asset Impairment Is,why the Auditor Is Concerned About

question 78

Essay

Asset impairment
Describe what asset impairment is,why the auditor is concerned about it,and how it is dealt with by the auditor.

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Definitions:

Direct Materials

Direct materials are raw inputs that are directly consumed in the manufacturing process of a product and can be directly attributed to that product.

Direct Labor

The labor cost of workers directly involved in the production of goods or services.

Process Costing

An accounting methodology that traces and accumulates direct costs, and allocates indirect costs, of a manufacturing process, costing each process separately.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, converting them into the amount of finished goods units that could have been produced with those costs.