Corporate Governance Means

question 33

Multiple Choice

Corporate governance means:

• A) the viability of a company to remain in business for the foreseeable future
• B) the rules, systems and processes within companies used to guide and control them
• C) an intentional act through the use of deception to obtain an unjust or illegal advantage
• D) the processes used by a client when finalising the accounts for an accounting period

---

Definitions:

Conversion Costs

The costs incurred in the process of converting raw materials into finished goods, including direct labor and manufacturing overhead expenses.

FIFO Method

A method of inventory valuation where the first items purchased or produced are the first ones sold, used in costing inventory.

Conversion Costs

The combined expenses of direct labor and manufacturing overheads incurred in transforming raw materials into finished goods.

Cost Per Equivalent Unit

A metric used in cost accounting to calculate the cost assigned to a single unit of production, incorporating both direct materials and labor costs, when multiple production stages are involved.