Which of the Following Is Not a Potential Fraud Indicator

question 102

Multiple Choice

Which of the following is not a potential fraud indicator in the acquisition cycle?

• A) Expenses that are significantly above or below industry norms.
• B) Expense accounts that have significant debit entries.
• C) Unexpected increases in gross margin.
• D) Capital assets that seem to be growing faster than the business.

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Definitions:

Cost Of Goods Sold

The immediate expenses linked to manufacturing goods sold by a company, encompassing both materials and labor costs.

Work In Process-Department X

The costs assigned to products that are in the middle of the manufacturing process within a specific department but are not yet completed.

Goods In Process

Inventory items that are partially completed; they have been started in production but are not yet finished goods.

Process Cost Accounting System

A method of accounting used to track and allocate costs associated with the production process.