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A Major Means by Which an Auditor Obtains Evidence About

question 10

Multiple Choice

A major means by which an auditor obtains evidence about material contingencies is ________.


Definitions:

Profit Center

A business segment whose manager has control over cost and revenue but has no control over investments in operating assets.

Margin

Net operating income divided by sales.

Turnover

Sales divided by average operating assets.

Manufacturing Cycle Efficiency

A metric that measures the efficiency of the manufacturing process by comparing the value-added production time to the total production time.

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