In a period of rising prices, the inventory costing method that will cause the company to have the highest cost of goods sold is:
A. FIFO.
B. Weighted average.
C. Specific identification.
D. LIFO.
Answer: D
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After obtaining an understanding of internal controls and assessing control risk of an entity, an auditor decided not to perform tests of controls for purposes of the audit. The auditor most likely decided that:
A. the assessed level of inherent risk exceeded the assessed level of control risk. B. a reduction in the assessed level of control risk is justified for certain financial statement assertions. C. it would be inefficient to perform tests of controls that would result in a reduction in planned substantive procedures. D. the available evidential matter obtained through tests of controls would not support an increased level of control risk.
Answer the following statements true (T) or false (F)
1. Final control of a nonprofit organization is held by the chief executive officer. 2. Excess revenues gained by a nonprofit are invested in stock markets. 3. The term “open systems” means organizations interact with their external environments. 4. The term “resource dependency” means nonprofits rely on external constituencies for revenue. 5. The term “organizational culture” in a nonprofit refers to unwritten rules regarding “how things are done.”
Econ Company produces widgets. Each widget sells for $120, and the company sells approximately 50,000 widgets each year. Unit cost data for the year follows: The unit cost of widgets for direct cost inventory purposes is:
a. $75 b. $45 c. $89 d. $70
The general idea of leading versus managing is that
a. Leading focuses on stability and the smooth running of operations b. Leading takes the most amount of time to gather the people behind you c. Leading consists of creating a vision and influencing others to achieve goals d. Leading focuses on the day-to-day activities to get a job done