An evaluator is rating 100 employees on a bell curve. She is instructed to label five employees "extraordinary" and five employees "unsatisfactory." The evaluator also is instructed to label 10 employees "above average" and 10 employees "below average." All of the other employees will be in the "average" category. Which of the following is the major drawback of using this method?

• A.The process of using the method is too time consuming
• B.An employee's evaluation will depend on who the evaluator is.
• C.Different evaluators have different standards.
• D.The evaluator must place some employees in the lowest and highest tails of a bell-shaped curve.

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On the last day of the year, a total cost of S 150.000 was incurred in indirect labor related to one of the key products an organization makes. How should the expense be reported on that year's financial statements?

• A.It should be reported as period cost other than a product cost on the management accounts
• B.It should be reported as cost of goods sold on the income statement.
• C.It should be reported as an administrative expense on the income statement.
• D.It should be reported on the balance sheet as part of inventory.

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Which of the following types of controls is not described in the IT Governance Institute's Control Objectives for information and Related Technology COBIT)?

• A.General controls.
• B.Exchange controls. C Business controls.
• C.Process controls.

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An internal auditor is assigned to perform data analytics. Which of the following is the next step the auditor should undertake after she has ascertained the value expected from the review?

• A.Normalize the data,
• B.Obtain the data
• C.Identify the risks.

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Which of the following changes in accounting policies resulting from a significant change in the expected pattern of economic benefit will increase profit?

• A.A change from FIFO to LIFO inventory valuation when costs are rising.
• B.A change from FIFO to weighted-average inventory valuation when costs are falling.
• C.A change from accelerated to straight-line depreciation in the later years of the depreciable lives of the assets.
• D.A change from straight-line to accelerated depreciation in the early years of the depreciable lives of the assets.

Correct Answer: B

According to IAS 16 Property, Plant, and Equipment, a change in depreciation method resulting from a significant change in the expected pattern benefits is accounted for as a change in estimate, that is. prospectively. In a period of falling cost=. FIF1 results in higher cost of goods sold than the weighted-average method. FIFO includes the higher, early in cost of goods sold, whereas the weighted-average method averages the later, lower costs with the higher, earlier costs. Thus, a change from FIFO to weighted-average costing reduces cost of goods sold and into reported profit. An entity had the following account balances in the pre-closing trial balance:

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