All of the Following Are Likely to Be Methods That

question 30

Multiple Choice

All of the following are likely to be methods that could be used to conduct fraud EXCEPT

• A) Overstating liabilities
• B) Not recording various expenses
• C) Creating fictitious invoices
• D) Overstating receivables

---

Definitions:

Direct Labor Costs

Wages and benefits paid to employees who are directly involved in the production of goods or services.

Indirect Costs

Expenses not directly tied to the production of goods or services, such as overhead, rent, and administrative salaries.

Manufacturing Environment

A setting where goods are produced on a large scale using machinery, labor, and other resources.

Factory Overhead Incurred

The total costs associated with operating a factory that are not directly related to the production, including utilities, maintenance, and property taxes.