Costs that are identified with and traced to one product or a batch of products are called
a. overhead costs.
b. indirect costs.
c. direct costs.
d. fixed costs.
C
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Janet is the purchasing agent at Frameco Manufacturing. Her duties include vendor selection and ordering materials. Due to a recent economic downturn and resulting cut backs, Janet has been assigned the additional duty of preparing receiving reports after comparing the goods received to the purchase order. This is an example of:
a. unlimited access to materials. b. independence of assigned functions. c. misappropriation of assets. d. a lack of segregation of duties.
When a V is used as a formatting character for an element, it indicates where the decimal point should occur, even though the actual decimal point is not included
Indicate whether the statement is true or false
How sensitive is the fair value estimate to changes in the discount rate? How much would the discount rate estimate have to change for it to have a material impact on the financial statements?
estimation uncertainty. These additional evaluations include: a) How management has considered alternative assumptions or outcomes and why it has rejected them or how management has otherwise addressed estimation uncertainty in making the accounting estimate. b) Whether the significant assumptions used by management are reasonable. c) When relevant to the reasonableness of the significant assumptions used by management or the appropriate application of the applicable financial reporting framework, management’s intent to carry out specific courses of action and its ability to do so. If, in the auditor’s judgment, management has not addressed adequately the effects of estimation uncertainty on the accounting estimates that give rise to significant risks, the auditor should, if considered necessary, develop a range with which to evaluate the reasonableness of the accounting estimate (AU-C 540:15-16). With respect to developing a reasonable range, standards indicate that a range is useful and effective if it is narrow enough for the auditor to conclude whether the accounting estimate is materially misstated and that, “ordinarily, a range that has been narrowed to be equal to or less than performance materiality is adequate for the purpose” (AU-C 540.A100). Finally, the auditor may need to engage a specialist and use their work as evidential matter to evaluate material financial statement assertions. In doing so, the auditor should consider the guidance in AU-C 620, Using the Work of a Specialist.
Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to ending inventory using LIFO. DateActivitiesUnits Acquired at CostUnits Sold at RetailMay 1Beginning Inventory330 units @ $18 5Purchase310 units @ $20 10Sales 230 units @ $2815Purchase190 units @ $21 24Sales 180 units @ $29
A. $16,130 B. $8590 C. $7750 D. $8260 E. $7540