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If the Cost of Employee Wages Is Not a Significant

question 104

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If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as factory overhead cost.


Definitions:

Segregation Of Duties

An internal control measure that divides responsibilities among different people to reduce risk of error or fraud.

Authorize

To give official permission for or approval to an action or plan.

Physical Controls

Security measures that are implemented to protect assets, including locks, surveillance cameras, and restricted access areas.

Segregation Of Duties

A risk management concept that divides tasks among different people to prevent fraud and errors in an organization.

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