Payroll and personnel costs at ABC Manufacturing are a major expense.This means that improper allocation or misclassification of labour costs could result in
A)a material misstatement of net income.
B)a net effect that is negligible when costing inventory.
C)quality control problems with respect to the production of finished products.
D)incorrect payment of payroll to employees.

Question

Quizplus · Accepted Answer

Payroll and personnel costs are a significant expense for ABC Manufacturing, and any misclassification or improper allocation of labor costs can result in a material misstatement of net income. This can have significant impacts on the financial statements and potentially misinform stakeholders, which is why it is critical to ensure proper allocation and classification of labor costs.

Payroll and Personnel Costs at ABC Manufacturing Are a Major