In Order for Spot Checks to Be Effective,they Must Be

question 129

Multiple Choice

In order for spot checks to be effective,they must be:

• A) random in nature.
• B) performed at regular intervals.
• C) partaken twice daily.
• D) rarely if ever done.

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Definitions:

Absorption Costing

A pricing approach that encompasses all costs related to production - including direct materials, direct labor, as well as both variable and fixed overhead expenses - within the product’s cost.

Absorption Costing

A method of accounting that includes all manufacturing costs, both variable and fixed, in the valuation of inventory and cost of goods sold.

Total Contribution Margin

The difference between total sales revenue and total variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.

Variable Costing

An accounting method that assigns only variable production costs to inventory and products; fixed costs are expensed as incurred.