China YTC International Has Established an Audit Committee Within Its

question 90

True/False

China YTC International has established an audit committee within its board of directors, appointed three new independent directors, and more openly speaks of serving investor's needs. This example illustrates that corporate governance in China may be tilting towards the Western model.

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Definitions:

Factory Overhead

The indirect costs of manufacturing, such as salaries of quality control personnel and depreciation of factory equipment.

Underapplied Overhead

Underapplied overhead occurs when the actual manufacturing overhead costs exceed the applied overhead costs allocated during a specific period.

Applied Overhead

The estimated amount of overhead cost assigned to a specific job or department based on predetermined rates.

Actual Overhead

The real, incurred costs of running a production or service operation, excluding direct labor and direct materials.