Which of the Following Contract Types Is Most Susceptible to Inappropriate

question 13

Multiple Choice

Which of the following contract types is most susceptible to inappropriate cost allocations?

• A) Cost-based
• B) Fixed-price
• C) Based on activities undertaken
• D) Dual-rate

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Definitions:

Replenish

To fill something up again, restoring its level or supply to a former state.

Journal Entry

The recording of financial transactions into the accounting records of a business, typically involving a debit to one account and a credit to another.

Petty Cash Fund

A small amount of cash kept on hand for minor, everyday business expenses.

Replenishment

The process of restocking products or materials to maintain inventory levels and meet demand.