Random Notes Flashcards
what is detection risk
it is the probability that a misstatement will not be discovered by the auditor
what will happened to planned audit evidence when detection risk decreases?
it will decrease
inherent risk is inverse or directly related to planned audit risk?
inverse
detection risk is inverse or directly related to planned evidence
direct
what are extraordinary items?
-material items that are both unusual and infrequent in occurrence
what is segment margin of a segment
-it’s contribution margin less all traceable fixed cost for the segment
what does full absorption costing consider as product cost?
-DM, DL & both fixed and variable overhead cost
what is semi-variable
-as it is variable in the sense that greater level of production increase total cost.
Is absorption always higher than variable?
- yes, because it involves all cost associated with mfg. process using total direct cost, overhead cost associated
with the mfg. of a product as cost base.
what includes in variable costing?
- DM, DL and variable manufacturing overhead cost
what are the components of full absorption cost operating income
-variable cost Operating income + fixed mfg. cost per unit(production units - sales unit)
what are the components of Total variable cost per unit?
-DM+DL+ variable mfg. overhead + variable selling cost
what does weighted-average method assumes?
- that all units and cost are current (no beginning inventory)
what are Theory of constraints
- throughput contribution, investment ( inventory), and operating cost
what is Kanban
- a visual signal indicating the need for a specified quantity materials or parts to move from one operatin or department
to another in a JIT sequence.
