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:

Environmentalists

Individuals or groups who advocate for the protection of the environment and promote awareness of environmental issues and sustainability.

Freedom To Farm Act

The Freedom to Farm Act, officially known as the Federal Agriculture Improvement and Reform Act of 1996, aimed to reduce government control over farming operations and crop production decisions in the United States.

Parity Ratio

A ratio that compares the value of one set of goods or services to another, often used in agricultural economics to compare farm prices to other prices in the economy.

Clayton Act

The federal antitrust law of 1914 that strengthened the Sherman Act by making it illegal for firms to engage in certain specified practices including tying contracts, interlocking directorates, and certain forms of price discrimination.