Final answer:
The statement is true as inquiries and recalculations during an audit or accounting have a low cost associated with them, mostly involving auditor's time and not direct expenses (A).
Step-by-step explanation:
The statement 'Inquiries of clients and recalculations normally have a low cost associated with them' is considered true. In the context of auditing and accounting, inquiries involve asking the client or management about the reasons behind certain financial statement presentations or transactions, which typically do not involve any monetary cost.
Recalculations, on the other hand, mean re-performing calculations that have already been done by the client to ensure their accuracy, and generally involve the time of the auditor but not direct out-of-pocket expenses. Therefore, compared to other audit procedures like physical inspections or inventory counts, inquiries and recalculations tend to be less resource-intensive and can be carried out quickly, thus having a relatively low cost in terms of time and financial resources.