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  3. Study Set
    Auditing and Assurance Services Study Set 2
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    Exam 21: Audit of the Inventory and Warehousing Cycle
  5. Question
    Management May Decide to Allocate Manufacturing Overhead Based Upon Machine
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Management May Decide to Allocate Manufacturing Overhead Based Upon Machine

Question 66

Question 66

True/False

Management may decide to allocate manufacturing overhead based upon machine hours. In this situation, the auditor must test and verify the reasonableness of the use of machine hours to allocate overhead.

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