In Order for a Ghost Employee Scheme to Work, the Paycheck

question 3

True/False

In order for a ghost employee scheme to work, the paycheck for the ghost must go to the person involved in the scheme.

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Definitions:

Absorption Costing

A method of accounting for costs in which all costs of manufacturing a product (including variable and fixed overhead costs) are considered product costs.

Net Operating Income

The profit generated from a company's normal business operations, excluding expenses such as taxes and interest charges.

Net Operating Income

The profit generated from a company's regular, core business operations, excluding deductions of taxes and interest.

Unit Product Cost

The total cost (direct materials, direct labor, and overhead) divided by the number of units produced.