Which of the Following Would Be an Indicator of Potential

question 75

Multiple Choice

Which of the following would be an indicator of potential fraud?

• A)Photocopies of invoices in the voucher file
• B)Vendor invoices in numerical order
• C)Vendors with only post office box addresses
• D)All of these indicate potential fraud.

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Definitions:

Fixed Costs

Costs that remain constant regardless of the amount of output or sales.

Variable Costs

Costs that change in proportion to the level of production or sales activity.

Direct Labor Budget

An estimation of the cost and amount of labor required for production or services, included within a company's overall budget planning.

Wage Rate

The amount of money paid to an employee per unit of time or per unit of output, which can be influenced by several factors including industry, occupation, and geographical location.