When testing a company’s cost accounting system, the auditor uses procedures that are primarily designed to determine that
A. Quantities on hand have been computed based on acceptable cost accounting techniques that reasonably approximate actual quantities on hand.
B. Physical inventories agree substantially with book inventories.
C. The system is in accordance with generally accepted accounting principles and is functioning as planned.
D. Costs have been properly assigned to finished goods, work-in-process, and cost of goods sold.
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