Stock keeping unit (SKU) storage is the warehousing methodology that uses a traditional warehouse to store all of one type of product together

The production cost report for Department 1 shows that $154,000 was assigned to the 36,000 units transferred to Department 2. This transfer cost assigned to units transferred to Department 2 is recorded with a debit to Work-in-Process—Department 2

Indicate whether the statement is true or false

Before accepting an engagement to audit a new client, an auditor is required to

A. Make inquiries of the predecessor auditor after obtaining the consent of the prospective client. B. Obtain the prospective client's signature to the engagement letter. C. Prepare a memorandum setting forth the staffing requirements and documenting the preliminary audit plan. D. Discuss the management representation letter with the prospective client's audit committee.