Production Accounting Generates Important Information for Management Decisions but Also

question 6

Multiple Choice

Production accounting generates important information for management decisions but also is a source of audit risk because ________.

• A)production accountants may not be competent
• B)production processes affect a lot of cost allocations
• C)goods produced may not be marketable
• D)goods claimed as produced may not exist

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Definitions:

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower fails to repay the loan.