Around the End of the Year,an Accountant Orders a Shipment

question 77

True/False

Around the end of the year,an accountant orders a shipment of inventory earlier than normally scheduled because she knows that it will result in lower cost of goods sold,and thus a higher net income.This action would be considered unethical because it is not a legitimate business transaction.

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Definitions:

Assembly Activities

Processes involved in putting together components to create a finished product.

Appliance Manufacturing

The process of producing household machines that perform specific tasks, such as cooking or cleaning.

Capacity Analysis Report

A document that evaluates the production capacity of a business to understand its ability to meet product demand.

Time-Based Activity-Based Costing

An accounting method that tracks costs of activities based on the time spent on them, allowing for more accurate product costing.