Pine, a member, is a partner at the firm of Oak & Spruce, CPA's. The firm has 6 partners, 50 professional employees, and 12 administrative staff. The firm performed an attest engagement for Forest Worldwide for the year ended December 31, 20X5. Since Forest Worldwide is a relatively complex engagement, a number of people were involved. Of the following participants in the engagement, which one is not considered to be a member of the attest engagement team? Top of Form · a) Pine performed the second partner review of the Forest Worldwide financial statements. · b) Wood, a tax associate, prepared the tax accrual and deferred tax computations for Forest Worldwide · c) Chip, an administrative employee, made copies and bound versions of the Forest Worldwide financial statements. · d) All of the above are members of the attest engagement team
Cost-Volume-Profit Analysis
Cost Volume Profit (CVP) analysis is a cost accounting method that analyses the effect of fluctuating cost and volume on the operating profit. Also known as break-even analysis, CVP determines the break-even point for varying volumes of sales and cost structures. This information helps the managers make economic decisions on a short-term basis. CVP analysis is based on many assumptions. Sales price, variable costs, and fixed costs per unit are assumed to be constant. The analysis also assumes that all units produced are sold and costs get impacted due to changes in activities. All costs incurred by the company like administrative, manufacturing, and selling costs are identified as either fixed or variable.
Marginal Costing
Marginal cost is defined as the change in the total cost which takes place when one additional unit of a product is manufactured. The marginal cost is influenced only by the variations which generally occur in the variable costs because the fixed costs remain the same irrespective of the output produced. The concept of marginal cost is used for product pricing when the customers want the lowest possible price for a certain number of orders. There is no accounting entry for marginal cost and it is only used by the management for taking effective decisions.
Pine, a member, is a partner at the firm of Oak & Spruce, CPA's. The firm has 6 partners, 50 professional employees, and 12 administrative staff. The firm performed an attest engagement for Forest Worldwide for the year ended December 31, 20X5. Since Forest Worldwide is a relatively complex engagement, a number of people were involved. Of the following participants in the engagement, which one is not considered to be a member of the attest engagement team?
Top of Form
· a) Pine performed the second partner review of the Forest Worldwide financial statements.
· b) Wood, a tax associate, prepared the tax accrual and
· c) Chip, an administrative employee, made copies and bound versions of the Forest Worldwide financial statements.
· d) All of the above are members of the attest engagement team
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
