In an interview with the plant manager regarding operations, the auditor is most likely to obtain evidence that raises concerns regarding
A. The capitalization vs. expensing policy.
B. The allocation of fixed and variable costs.
C. The need to write-off equipment that has become obsolete.
D. The adequacy of depreciation expense.
C. The need to write-off equipment that has become obsolete.
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A company has established 5 pounds of Material J at $2 per pound as the standard for the material in its Product Z. The company has just produced 1,000 units of this product, using 5,200 pounds of Material J that cost $9,880.The direct materials price variance is:
A. $520 unfavorable. B. $520 favorable. C. $120 favorable. D. $400 unfavorable. E. $400 favorable.
At the worksite, inspectors concentrate more on technical infractions than on dangerous hazards.
Answer the following statement true (T) or false (F)
Many federal and state agencies gather information through on-site inspections. Sometimes a search of a home, an office, or a factory is a way to get evidence to prove a regulatory violation. In connection with these inspections, and the constitutional right to freedom from illegal search and seizure,
a. administrative agencies, like the police, must generally (but not always) comply with the search and seizure provisions of the Fourth Amendment. b. the Fourth Amendment prohibitions against illegal search and seizure do not apply to administrative agencies and they can generally search without a warrant. c. the Fourth Amendment applies to administrative agencies, but it does not apply to civil servants and so they are free to search without a warrant. d. agencies need a search warrant only when they intend to follow their administrative actions with a criminal prosecution.
Consider the Demand for Microwave Ovens data set. What is the total demand corresponding to random numbers 13, 90, 6, 5, 4, and 49?
A. 8 B. 9 C. 6 D. 7