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3 years ago

Auditing :How to distinguish between test of control and substantive test

1 answer:

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Test of controls is when you test controls surrounding a financial process . Substantive test are performed when one tests assertions surrounding a balance.

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EcoSacks manufactures cloth shopping bags. The controller is preparing a budget for the coming year and asks for your assistance

Sidana [21]

Answer:

ECOSACKS

Production Budget

Sales 540,000

closing inventory(FG) 210,000

750,000

Opening Inventory(FG) ( 120,000)

Production 630,000

Materials Purchase budget 

cotton canvas

yards yards

Material usage 630,000 126,000

Material purchase cost $2,520,000 $1,512,000

 Labor Budget 

labor hour(630,000*0.5) 315,000

Labour cost (315,000*18) $5,670,000

 Overhead budget

Production unit 630,000

Overhead cost ( 630,000*$3.40) $2,142,000

Explanation:

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3 years ago

Read 2 more answers

Based on what you have read, what is the opportunity

Crazy boy [7]

Answer:a higher quality item

Explanation:

A higher quality them

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3 years ago

Assume the following: The variable portion of the predetermined overhead rate is $3.00 per direct labor-hour. The standard labor

Artemon [7]

Answer:

Variable overhead efficiency variance= $3,000 favorable

Explanation:

To calculate the variable overhead efficiency variance, we need to use the following formula:

Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate

Standard quantity= 3*15,000= 45,000 hours

Actual quantity= 44,000 hours

Standard rate= $3 per hour

Variable overhead efficiency variance= (45,000 - 44,000)*3

Variable overhead efficiency variance= $3,000 favorable

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3 years ago

Retailers may use online liquidators to address the problem of ________. A) distressed inventory B) shopping cart abandonment C)

Verizon [17]

Answer:

The correct answer is the option A: distressed inventory.

Explanation:

To begin with, in the field of business management and marketing as well, the term of "distressed inventory" refers to the situation where the company has for a long time its products that are not being sell and for that reason the inventory is getting stuck in the business without obtaining profits from that situation. Therefore that in order to address that problem the marketing department alongside with the head manager should start online liquidators to increase the number of sales of those products.

4 0

3 years ago

A shift from labor to equipment is:

leva [86]

Answer:

In summary, labor supply is the total hours that workers or employees are willing to work at a given wage rate. Changes in income, population, work-leisure preference, prices of related goods and services, and expectations about the future can all cause the labor supply to shift to the right or left.

6 0

3 years ago