Which of the following best describes the amount of misstatement an auditor is willing to accept and still judge that an account balance is not materially misstated?
a. Tolerable misstatement.
b. Performance materiality.
c. A clearly trivial amount.
d. Significant risk.
a
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Which of the following is NOT one of the six basic factors to consider in the allocation of a salesperson's calls?
A. Number of accounts in the territory B. Compensation C. Frequency of customer sales calls D. Nonselling time E. Travel time
Homeyer Corporation has provided the following data for its two most recent years of operation: Selling price per unit$71Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials$12Direct labor$6Variable manufacturing overhead$3Fixed manufacturing overhead per year$264,000Selling and administrative expenses: Variable selling and administrative expense per unit sold$4Fixed selling and administrative expense per year$74,000 Year 1Year 2Units in beginning inventory03,000Units produced during the year11,00012,000Units sold during the year8,00014,000Units in ending inventory3,0001,000The net operating income (loss) under absorption costing in Year 1 is closest to:
A. $208,000 B. $30,000 C. $176,000 D. $102,000
Sales taxes payable is reported as a(n):
A. Long-term asset. B. Estimated liability. C. Contingent liability. D. Current liability. E. Business expense.
The term incremental cost refers to
a. the additional cost of producing one more unit of a product. b. a cost that will continue even if there is no activity. c. a cost common to all of the options and not clearly allocable to any of them. d. the profit given up by choosing one course of action instead of another.