With the Enactment of the Sarbanes-Oxley Act of 2002,all Public

question 51

Multiple Choice

With the enactment of the Sarbanes-Oxley Act of 2002,all public companies are now required by the SEC to disclose whether or not the company has:

• A)An audit committee.
• B)Human resources guidelines.
• C)A code of ethics.
• D)A management compensation plan.

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Definitions:

Process Cost System

An accounting system used to apply costs to similar products that are mass-produced in a continuous fashion.

Factory Overhead Applied

The allocation of overhead costs, such as utility and maintenance expenses, to the production process or products based on predetermined rates.

Actual Costs

Actual costs are the actual expenses incurred in the production or acquisition of goods and services, as opposed to estimated or budgeted costs.

Credit Balance

A balance that appears on the right side of an account, indicating that a company owes money or has a liability.