The EFTA Addresses All but Which of the Following Kinds

question 12

Multiple Choice

The EFTA addresses all but which of the following kinds of errors?

• A) Unauthorized transfers.
• B) Disbursement errors.
• C) Computational mistakes.
• D) Payments on altered and forged checks.

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Definitions:

Variable Production Costs

Costs that vary directly with the level of production, such as raw materials and direct labor.

Product Costs

All costs that are involved in acquiring or making a product. In the case of manufactured goods, these costs consist of direct materials, direct labor, and manufacturing overhead. Also see Inventoriable costs.

Absorption Costing

A costing method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in unit product costs.

Manufacturing Costs

The total expense involved in the manufacture of a product, including direct materials, direct labor, and manufacturing overhead.