Fred,a Successful Stockbroker,gives a Lecture About Investing

question 43

Essay

Fred,a successful stockbroker,gives a lecture about investing.Some of the persons who attend the lecture form Gain & Profit,an investment club,and ask Fred to advise them.Gain & Profit allows Fred to set up an account for the club with a brokerage firm and gives Fred control of the account,but does not authorize Fred to withdraw funds for his own bene?fit.Fred uses the funds in the Gain & Profit account to repay per?sonal loans.Charged with embezzlement,Fred defends his actions on the ground that he intended to repay the club.Is Fred guilty of embezzle?ment? Why or why not?

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Departmental Overhead Rates

Rates calculated to allocate overhead costs to specific departments based on their activities or output.

Machine Hours

A measure of production time used in manufacturing, indicating the total hours a machine is operated.

Oak Paneling

Oak paneling refers to wall or ceiling covering material made from oak wood, prized for its durability, appearance, and texture.

Unit-Level

Activities or costs that vary with each unit of production, such as materials and direct labor.