Pricing manufactured inventory is difficult. Auditors must evaluate the method of allocating manufacturing overhead for all but which of the following?
A) reasonableness
B) computational correctness
C) compliance with generally accepted auditing standards
D) consistency

Question

Quizplus · Accepted Answer

Compliance with generally accepted auditing standards is not a relevant factor in evaluating the method of allocating manufacturing overhead for pricing manufactured inventory. However, reasonableness, computational correctness, and consistency are important factors that auditors must consider when evaluating the method of allocating manufacturing overhead.

Pricing Manufactured Inventory Is Difficult