An Employee Routinely Throws Excess Raw Materials in the Dumpster

question 49

Multiple Choice

An employee routinely throws excess raw materials in the dumpster outside the business and then takes it home with him after hours. This is an example of:

• A) Accounts receivable fraud.
• B) Expenditure cycle fraud.
• C) Custodial theft of money.
• D) Production cycle fraud.

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Definitions:

AVC

Average Variable Cost, representing the variable costs (costs that change with production volume) per unit of output in economics.

ATC

Average Total Cost, which is the total cost divided by the quantity produced, encompassing both fixed and variable costs.

Pregnancy State

A medical condition characterized by the development of a fetus inside the uterus, encompassing various stages from conception to birth.

Incidental

Occurring by chance or without intention, particularly in the context of finding something unrelated during examinations for other reasons.