Which of the Following Statements Regarding Larceny Is NOT True

question 28

Multiple Choice

Which of the following statements regarding larceny is NOT true?

• A) Larceny is easier to detect than skimming and is less common.
• B) Larceny occurs when employees steal cash before the amounts have been recorded in the accounting system.
• C) Smaller occurrences of larceny are often written off as "shorts" or "miscounts."
• D) Perpetrators of larcenies must have direct access to inventory or other assets.

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Definitions:

Direct Labour Wage Rate

The hourly rate paid to workers directly involved in the production of goods or services.

Overhead Rate

The ratio of overhead costs to the base cost, used to allocate overhead to products or services.

Cost of Goods Manufactured

The total production cost of the goods completed and ready for sale, including direct materials, direct labor, and manufacturing overhead.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production based on a specific activity like labor hours or machine hours.