Explain the Relevance of the Sarbanes Oxley Act to the Documentation

question 76

Essay

Explain the relevance of the Sarbanes Oxley Act to the documentation tools you have studied in this chapter.

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Definitions:

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Sales

The total revenue generated from goods or services sold by a company.

Product Costs

Costs that are assignable to the production of goods, including direct materials, direct labor, and manufacturing overhead.

Period Costs

Expenses that are not directly tied to the production process and are recorded as expense in the period they are incurred, such as selling, administrative, and general expenses.