At the end of the fiscal year, the variances from standard are usually transferred to the finished goods account
Indicate whether the statement is true or false
False
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Star Treadmill, manufactured by KM Group of Manufacturers, costs $700. The product has relative cost of purchase of 90, and a perceived customer value of 40. What is the relative performance of Star Treadmill?
A) 130 B) 50 C) 77.7 D) 40 E) 2.25
Which of the following statements is TRUE of performance reporting?
A) Responsibility reports should focus on the person responsible for unfavorable variances, rather than information. B) Managers should not be held accountable for uncontrollable variances. C) Only unfavorable variances in the reports should be explained. D) Every variance, regardless of magnitude, must be investigated by the managers.
Why should drafting and revising be completed as two separate steps?
Which of the following describes the environment in internal control?
A) Internal auditors monitor company controls to safeguard assets, and external auditors monitor the controls to ensure that the accounting records are accurate. B) The environment is the "tone at the top" of the business. C) The environment is designed to ensure that the business earns profit. D) A company must identify its risks.