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Which of the following statements is true of random testing?
Raw Materials Inventory
Items and supplies that are used in the production process of goods, held in storage awaiting to be processed.
Standard Cost Variances
The differences between the actual costs incurred and the standard costs, analyzed to assess performance in various areas such as materials, labor, and overhead.
Cost of Goods Sold
The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly used to create the good.
Direct Labor Costs
Expenses associated with the wages and benefits of employees who directly work on the production of goods.
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