Fraud Is More Prevalent in Smaller Businesses and Not-For-Profit Organizations

question 111

Multiple Choice

Fraud is more prevalent in smaller businesses and not-for-profit organizations because it is more difficult for them to maintain

• A) adequate separation of duties.
• B) adequate compensation.
• C) adequate financial reporting standards.
• D) adequate supervisory boards.

---

Definitions:

Equivalent Units

A concept used in process costing that converts partially completed units into a number of fully equivalent units.

Weighted Average Method

A cost accounting method used to calculate the cost of goods sold and ending inventory by taking into account the weighted average of all inventory costs.

Job Order Cost Accounting

An accounting method that accumulates and assigns costs to specific products or projects based on individual job orders.

Equivalent Units

A concept used in cost accounting to convert partially completed goods into a number of complete units of output.