Monica Marcelloni's Team Has Been Asked to Tackle Three Ongoing

question 7

Multiple Choice

Monica Marcelloni's team has been asked to tackle three ongoing frauds and her partner has asked her to follow up only on the financial reporting fraud. Which of the following items
Will she be pursuing?

• A) theft of stock by employees or customers
• B) employees remaining on the payroll after ceasing employment
• C) recording fictitious sales
• D) unauthorized refunds to customers

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Definitions:

Direct Materials

Materials directly linked to the production of a certain product and incorporated into its cost.

Predetermined Overhead

An estimated rate used to allocate overhead costs to products or services based on expected activities and costs.

Direct Materials

Materials that can be directly linked to the production process and form a fundamental component of the final product.

Direct Labor-Hours

The cumulative hours that employees actively participating in manufacturing processes have worked.