What are the substantive analytical procedures that can be used to test inventory and related account balances ?
All Answers
total answers (1)
total answers (1)
Accounting
- Compare raw material, finished goods, and total inventory turnover to previous periods' and industry averages.
- Compare days outstanding in inventory to previous periods and industry data.
- Compare gross profit percentage by product line with previous periods' and industry data.
- Compare actual cost of goods sold to budgeted amounts.
- Compare current-year standard costs with prior periods' after considering current conditions.
- Compare actual manufacturing overhead costs with budgeted or standard manufacturing overhead costs.
need an explanation for this answer? contact us directly to get an explanation for this answer