If Employees Are Competent and Trustworthy, Other Controls Can Be

question 114

True/False

If employees are competent and trustworthy, other controls can be absent.

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Definitions:

Direct Materials

Materials that can be directly traced to the production of specific goods or services.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.

Manufacturing

The process of converting raw materials into finished products through various methods such as assembly, machining, or chemical processing.

Raw Materials Used

The total cost of all raw materials that are consumed in the production process during a specific period.