In a public accounting ﬁrm, for example, costs are assigned to an audit engagement in much the same way they are assigned to a single batch of tables by a furniture manufacturer.

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This statement is true. Just as a furniture manufacturer assigns costs to each batch of tables it produces, a public accounting firm assigns costs to each audit engagement it performs. Both types of businesses use cost accounting techniques to allocate costs to each unit of production.

In a Public Accounting ﬁRm, for Example, Costs Are Assigned