For New Clients,the Auditor Can Obtain Knowledge About the Client's

question 6

True/False

For new clients,the auditor can obtain knowledge about the client's business and its industry from the permanent file.

---

Definitions:

Direct Materials Price Variance

The difference between the actual cost of direct materials and the standard cost, multiplied by the quantity purchased.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost multiplied by the actual hours worked.

Actual Quantity

The real amount of materials, labor, or overhead used in production or service delivery, as opposed to budgeted or standard quantities.

Standard Variable Overhead

This refers to the portion of variable overhead costs in production that varies directly with the level of production output or activity.