Standard costs are based solely on expected future costs and conditions
Indicate whether the statement is true or false
F
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Determining that proper amounts of depreciation are expensed provides assurance about management's assertions of presentation and disclosure and:
A. existence. B. completeness. C. rights and obligations. D. valuation and allocation.
Typically, the impact of the LIFO reserve is to
A) increase cost of goods sold and decrease ending inventory B) decrease cost of goods sold and decrease ending inventory C) increase cost of goods sold and increase ending inventory D) have no effect on cost of goods sold and ending inventory
Management can expect various benefits to follow from implementing a system of strong internal control. Which of the following benefits is least likely to occur?
a. Reduced cost of an external audit. b. Preventing employee collusion to commit fraud. c. Availability of reliable data for decision-making purposes. d. Some assurance of compliance with the Foreign Corrupt Practices Act of 1977. e. Some assurance that important documents and records are protected.
Management of Bluebird Manufacturing is considering whether to drop a product line. So far, management has determined that the product has a negative contribution margin and that lost revenues are less than the total cost savings. In making the final decision, what are other questions that the management of Bluebird should consider?
What will be an ideal response?