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Control ratios: Three important ratios are usually used by the management to find out whether the variations from budgeted results are unfavorable or favorable. These ratios are expressed as percentages and any ratio beyond 100% is favorable and an ratio less than 100% is unfavorable. The three ratios are:
a) Activity Ratio: this ratio is a measure of the level of activity attained over a period.
b) Capacity Ratio: capacity ratio specifies whether and to what extent budgeted hours of activity are actually utilized..
c) Efficiency Ratio: Efficiency ratio specifies the degree of efficiency attained in production.
You are currently an Analyst working for a finance publication firm and as part of your responsibilities; you are required to provide a monthly forecast and analysis of certain com
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Checklists or questionnaires Audit firm will have a standard list of control questions. Audit staff can quickly ascertain which if any, are in operation by the client. There
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