Time Tickets Should Be Approved by

question 19

Multiple Choice

Time tickets should be approved by

• A) the audit committee.
• B) co-workers.
• C) the employee's supervisor.
• D) the payroll department.

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Definitions:

Accounting Costs

Costs that are recognized in the financial statements and involve actual cash flow, such as salaries, rent, and materials.

Implicit Costs

Costs that are not directly paid out or incurred in money but represent the opportunity cost of using resources owned by the firm for its own production instead of renting them out or selling.

Explicit Costs

Direct, out-of-pocket payments made by a business for resources and services used in production.

Incremental Cost

The additional cost associated with producing one more unit of a product or service.