Requirement $6.$ How might the corporate controller learn whether the data provided by particular plants are being$$ manipulated?

A$.$

Examine trends in ending work in process. Plants that report low amounts of ending work in process relative to total production are not likely to be able to greatly affect equivalent unit cost amounts by manipulating percentage of completion estimates. Plants that show sizable quantities of total production in ending work in process are more likely to be able to manipulate equivalent cost computations by manipulating percentage of completion estimates.

B$.$

Have plant controllers report detailed breakdowns on the stages of production and then conduct$$ end$-$of$-$month audits to verify the actual stages completed for ending work in process.

C$.$

Both A$.$ and B$.$

D$.$

Neither A$.$ nor B$.$ would be effective methods of detecting data manipulations by the plants.