Complete question:
Assume the following general flow of documents in an accounting system. Reply to the following question:
"Source Documents --> Journals --> Ledgers"
The auditors are concerned about source documents that reflect valid transactions that have not been recorded in the journals. Which procedure would be most effective?
(1) Trace from source documents to journals.
(2) Vouch from journals to source documents.
Either (1) or (2).
Answer:
(1) Trace from source documents to journals.
Explanation:
Tracing is the method of tracking the transaction back to the source document in accounting records. Transaction failures are monitored and auditors are often used to ensure whether transactions have been properly reported.
Tracing relates to the compilation and the follow-up to the record of an financial transaction (the source document).
Tracing checks to see that the transactions that happened in the financial reports are registered. Therefore it would be most effective to translate "Trace documents from source into journals."
Target market and target demographics. You can think of this as an avatar of the ideal customers.
Answer:
e. on intangible factors, perceptions, and multiple parties
Explanation:
Firms are unable to determine accurately how much customers are willing to pay because of intangible factors like taste, preference, and cultural beliefs that are hard to guage.
Also consumers make decisions based on perception of value they will derive from a product.
Finally multiple partners play a role in customer decision, where there are multiple choices in the market consumers have wide variety to choose from.
ANSWER: Verbal.
Otherwise, the answer could be:
Effective.
Answer and Explanation:
The computation is shown below
a . The cost of goods sold is
= Sales - cost of goods sold
= $1,326,700 - $358,200
= $968,500
b. The direct material cost is
= Material purchased - ending inventory - indirect materials
= $676,600 - $49,100 - $49,100
= $578,400
c, The direct labor cost is
= Total manufacturing overhead cost - other factory overhead - direct material cost - indirect material - indirect labor
= $1,464,700 - $22,600 - $578,400 - $49,100 - $119,400
= $695,200
