Which of the Following Defines Lapping

question 12

Multiple Choice

Which of the following defines lapping?

• A) Embezzling one customer's payment and then crediting that customer's account when a subsequent customer pays
• B) Stealing cash from an organization before it is recorded on the organization's books and records
• C) Helping a vendor illegally obtain a contract that should have involved competitive bidding
• D) Demanding a payment from a vendor in order to make a decision in that vendor's favor

---

Definitions:

Standard Costing

An accounting method that assigns predetermined costs to cost units, used to control costs and measure performance.

Labour Efficiency Variance

The difference between the actual labor hours used and the standard labor hours expected for the level of production achieved.

Variable Overhead

Indirect manufacturing costs that vary with the level of production output, such as utilities and maintenance expenses.

Labour Rate Variance

The difference between the actual cost of labor and its budgeted (or standard) cost, often arising from paying different wages than anticipated.