Secondary Customers Are Those People Whose Systems or Processes Are

question 24

Multiple Choice

Secondary customers are those people whose systems or processes are influenced by implementing audit recommendations. Secondary customers also include people who make direct use of the information contained in the audit report. All of the following are examples of secondary customers EXCEPT:

• A) High-level managers of agencies or bureaus.
• B) Local/city governments.
• C) Operating managers of agencies or bureaus.
• D) Special interest groups (e.g., consumer advocacy groups, social service organizations, industry and trade groups, etc.)

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Definitions:

Process Costing

A costing methodology used in industries where production is continuous, assigning costs to masses of similar units.

Materials

Raw inputs or components that are used in the production of goods or delivery of services.

Conversion Costs

The combined costs of direct labor and manufacturing overheads, which are incurred to turn raw materials into finished goods.

Units in Process

An inventory classification representing products partially completed in the manufacturing process, often evaluated at the end of an accounting period.