For Good Internal Control, the Payroll Function Should Be Independent

question 53

True/False

For good internal control, the payroll function should be independent of the personnel department.

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Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, excluding direct materials and direct labor expenses.

Work in Process

Inventory that includes goods in production but not yet completed, often assessed in the manufacturing sector.

Direct Materials

The raw materials that are directly used in the manufacturing of a product, which are easily traceable to the finished product.

Additional Manufacturing Overhead

Costs incurred in the manufacturing process that are above the initially budgeted or standard manufacturing overhead costs.