The Auditor in Making Inquiries Regarding the Standard Cost Systems

question 95

Multiple Choice

The auditor in making inquiries regarding the standard cost systems normally does not make which of the following inquiries?

• A)the method for developing standard costs.
• B)the method for identifying components of overhead and of allocating overhead to products.
• C)the method for identifying sales cutoff.
• D)the method used for identifying variances,following up on their causes,and allocating them to inventory and cost of goods sold.

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Definitions:

Automatic Trade Execution

A feature of trading platforms that allows for the immediate execution of trades at the market price, based on pre-set criteria without manual intervention.

Stop-Loss Order

A type of order placed with a broker to sell a security when it reaches a certain price, used to limit an investor's loss on a position.

Limit Sell Order

An instruction to sell a security at a specified price or better, ensuring that the sell price is no lower than what the seller has defined.

Gains

The monetary increase in value of an asset or investment over its purchase price.