Section 404 of Sarbanes-Oxley Is the Section That Requires Certification

question 141

True/False

Section 404 of Sarbanes-Oxley is the section that requires certification of the adequacy of a company's internal controls.

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Definitions:

Started into Production

The point at which materials begin their process of being transformed into finished goods within a manufacturing system.

Weighted-Average Method

An inventory costing method that values inventory and the cost of goods sold based on the average cost of all items available.

Process Costing System

An accounting methodology used for homogenous products, allocating costs across units of production, making it easier to determine per-unit costs.

Processing Department

A division within a manufacturing facility where a specific type of processing or production takes place.