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NEW QUESTION: 1
The economic order quantity for inventory is higher for an organization that has:
A. Higher annual carrying costs as a percentage of inventory value.
B. Higher fixed inventory ordering costs.
C. Lower annual unit sales.
D. A higher purchase price per unit of inventory.
Answer: B
NEW QUESTION: 2
If a patient is allergic to alcohol, which of the following should they not use?
A. Suspension
B. Elixir
C. Insulin
D. Syrup
Answer: B
NEW QUESTION: 3
Which of the following auditing procedures most likely would provide assurance about a manufacturing
entity's inventory valuation?
A. Tracing test counts to the entity's inventory listing.
B. Obtaining confirmation of inventories pledged under loan agreements.
C. Testing the entity's computation of standard overhead rates.
D. Reviewing shipping and receiving cutoff procedures for inventories.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Choice "A" is correct. Testing the entity's computation of standard overhead rates generally provides
assurance about a client's inventory valuation.
Choice "B" is incorrect. Obtaining confirmation of inventories pledged under loan agreements provides
assurance about the appropriate presentation, description, and disclosure of such matters in the financial
statements.
Choice "C" is incorrect. Reviewing shipping and receiving cutoff procedures for inventories provides
assurance about completeness and existence of inventory.
Choice "D" is incorrect. Tracing test counts to the entity's inventory listing provides assurance about the
completeness of the client's listing.
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