Distinguish Between a Fidelity Bond and a Surety Bond

question 40

Essay

Distinguish between a fidelity bond and a surety bond.

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Definitions:

Manufacturing Accounts

Financial statements that reflect the costs and revenue associated with the manufacturing process of a company.

Process Costing

A costing method used where similar items are produced in a continuous manufacturing environment, assigning costs based on the process they go through.

Direct Materials

Direct Materials are raw materials that are directly traceable and allocable to a finished product in the manufacturing process.

Work in Process Inventory

Items currently undergoing production but have not yet reached completion.