When Two or More Employees Act Together to Misstate Accounting

question 49

Multiple Choice

When two or more employees act together to misstate accounting records, they have committed what is referred to as:

• A) a felony.
• B) collusion.
• C) defalcation.
• D) malfeasance.

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Definitions:

Raw Materials Purchases

Raw Materials Purchases involve the acquisition of basic inputs needed to manufacture goods or provide services, a crucial component of production costs.

Direct Materials Standards

These are predefined criteria determining the cost and quantity of direct materials supposed to be used in production processes.

Work in Process Inventory

Goods that are partially completed in a manufacturing process but not yet ready for sale.

Fixed Manufacturing Overhead

The set costs associated with manufacturing a product that do not vary with the level of production, such as rent or salaries.