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In Response to Accounting Scandals in 2002,the Federal Government Passed

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In response to accounting scandals in 2002,the federal government passed legislation requiring,among other things,that auditors disclose any potential conflicts of interest.What is the name of this legislation?


Definitions:

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the standard cost, demonstrating how actual labor costs differ from budgeted amounts.

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost, multiplied by the quantity of materials used.

Fixed Manufacturing Overhead

The portion of manufacturing overhead costs that do not vary with production volume, such as rent and salaries of supervisors.

Direct Labor Variances

The difference between the actual labor costs incurred and the standard labor costs for the actual production level.

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