The Manager AUTC Spentime Learning the Warehouse System as an Insider

question 16

Multiple Choice

The manager aUTC spentime learning the warehouse system as an insider views it, and discovered thainaccurate warehouse inventory numbers resulted from

• A)employees throwing away materials.
• B)a problem with software that tracked inventory.
• C)pressures on employees to work fast, preventing them from accurately counting and recording what was shipped.
• D)employee theft.

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Definitions:

Equivalent Unit

A metric used in cost accounting to express the amount of work done on incomplete units as a proportion of work done on complete units.

Factory Overhead

Refers to the indirect costs associated with manufacturing, excluding direct materials and direct labor costs.

Direct Labor

Direct labor involves the work of employees that can be directly attributed to the production of specific goods or services.

Direct Materials

The raw materials that are traceable directly to the production of a specific good or product, forming an integral part of the finished product.