China YTC International Has Established an Audit Committee Within Its

question 90

True/False

China YTC International has established an audit committee within its board of directors, appointed three new independent directors, and more openly speaks of serving investor's needs. This example illustrates that corporate governance in China may be tilting towards the Western model.

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Definitions:

Factory Overhead

Factory overhead encompasses all the indirect costs associated with manufacturing, such as utilities, maintenance, and salaries of non-direct labor.

Assemblers Wages

The compensation paid to workers who are responsible for piecing together components to form a finished product.

Direct Labor

The cost of wages for employees who are directly involved in the production of goods or services, considered a variable cost in financial accounting.

Direct Materials

This refers to raw materials that are directly incorporated into a finished product during the manufacturing process.