If Employees Are Bonded

question 91

Multiple Choice

If employees are bonded

• A) it means that they are not allowed to handle cash.
• B) they have worked for the company for at least 10 years.
• C) they have been insured against misappropriation of assets.
• D) it is impossible for them to steal from the company.

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Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the activities that it requires.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the activities that drive costs.

Overhead Applied

The portion of overhead costs allocated to individual products or job orders based on a predetermined rate or method.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific products or projects based on their use of activities, providing more accurate cost information.