UNIT 8 $6,860 ($9,800 X .70) COST OF NEXT 7 UNITS = (8 X $6,860...

251. Correct answer d. Internal auditors are often looking for significant or unexpected

variances in account balances and investigate these. All of the methods listed - Cost

Variance Analysis, Flexible Budgets and Activity-based Management – can assist internal

auditors in such variance analyses, except for joint cost allocation, which is a method of

allocating costs to products, and does not help with variance analysis.