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Briefly explain how a SAS 70 report is used in assessing internal controls of outsourced facilities.
Period Costs
Expenses that are not directly associated with the production of goods and are expensed in the period they are incurred, such as selling and administrative expenses.
Product Costs
Expenses directly incurred in the manufacturing of a product.
Period Cost
A financial metric that includes all costs not associated with the production of goods, such as administrative and sales expenses.
Product Cost
The total costs associated with making a product, including direct labor, direct materials, and overhead expenses.
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