When manufacturing labour affects inventory valuation,a knowledgeable manager should approve wage rate allocations to make sure that labour is distributed to the proper accounts.Which of the following controls helps to prevent error in the resulting job costing?
A)comparison of wage rates to the authorized payroll master file
B)independent comparison of the approved amounts to the data entered
C)continuity check of the payroll cheque numbers issued
D)reconciliation of gross pay on the payroll register with gross pay according to the payroll master file

Question

Quizplus · Accepted Answer

Independent comparison of the approved amounts to the data entered is the best control in this scenario as it ensures that the approved wage rate allocations have been accurately entered and prevents errors from going unnoticed. Comparison of wage rates to the authorized payroll master file, continuity check of payroll cheque numbers issued, and reconciliation of gross pay on the payroll register with gross pay according to the payroll master file are all important controls, but they do not directly address the issue of preventing errors in job costing resulting from inaccurate wage rate allocations.

When Manufacturing Labour Affects Inventory Valuation,a Knowledgeable Manager Should Approve