What Action Did the U

question 42

Multiple Choice

What action did the U.S.Congress take because of the audit failures at Enron,WorldCom and other companies?

• A)Required publicly-traded companies to be audited by a government agency
• B)Passed the Sarbanes-Oxley Act
• C)Required companies to begin preparing an additional financial statement
• D)Passed an amendment to the Securities and Exchange Act

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Definitions:

Cost Per Equivalent Unit

A calculation used in process costing that divides the total cost of production by the number of units produced, adjusted for their stage of completion.

Materials Cost

The expense associated with the raw materials and components required for manufacturing a product.

Processing Department

A division within a factory where a specific stage of production is carried out.

Total Cost Transferred

The entire sum of costs that have been allocated from one department or process to another within an organization.