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Describe the major evidence gathering procedures most often used by auditors.
Variable Costs
Costs that vary directly with the level of production or volume of output, such as materials and labor.
Manufacturing Overhead
Every cost related to the manufacturing process that isn't direct labor or direct materials expenses.
Conversion Costs
The costs incurred to convert raw materials into finished products, including direct labor and manufacturing overhead but not direct materials.
Direct Labor
The wages paid to workers who are directly involved in the production of goods or services.
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