Jane Finds a Material Misstatement While Auditing a Client's Accounts

question 78

Multiple Choice

Jane finds a material misstatement while auditing a client's accounts receivables. Her senior tells her to ignore the misstatement so that the client does not get upset. Jane wants to be viewed as a team player in order to advance in the firm. So Jane follows her senior's instructions and ignores the misstatement. Which ethical theory did Jane use to make her decision?

• A) Egoism
• B) Justice
• C) Virtue ethics
• D) Utilitarianism

Recognize the need for updating standard costs in response to changes in production specifications, labor contracts, and material costs.

Understand the concept and calculation of direct labor variances, including rate and time variances.

Identify and calculate direct materials variances, including price and quantity variances.

Grasp the methods for calculating total factory overhead cost variances and understand their components.

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Definitions:

Supply Curve

A visual depiction that illustrates the connection between the cost of a product and the amount available.

MC Curve

The Marginal Cost Curve, depicting the increase in total cost that arises from producing one additional unit of a good or service.

Cost Curves

Graphs that show the cost of producing different quantities of a good or service, typically including average and marginal cost curves.

Market Price

The current price at which an asset or service can be bought or sold in a competitive marketplace.