Which of the following documents is most likely to provide evidence to support the validity of estimates used in a client's standard costing system?
A) Variance reports.
B) Consignment confirmations.
C) Materials requisitions.
D) Purchase orders.

Question

Quizplus · Accepted Answer

Variance reports compare actual costs to standard costs, and any significant differences can indicate issues with the validity of the estimates used in the standard costing system. Consignment confirmations, materials requisitions, and purchase orders do not necessarily provide evidence of the accuracy of standard cost estimates.

Which of the Following Documents Is Most Likely to Provide