When labour is a significant part of inventory, verifying the proper accounting of these costs should be tested in the:
A) cash cycle.
B) acquisitions and payments cycle.
C) inventory and warehousing cycle.
D) payroll and personnel cycle.

Question

Quizplus · Accepted Answer

When labor is a significant part of inventory, it is crucial to verify the proper accounting of these costs in the payroll and personnel cycle, as this cycle deals with the recording and allocation of labor costs.

When Labour Is a Significant Part of Inventory, Verifying the Proper