This article focuses on how standard cost variances can be used in detecting potential fraudulent activities. Each primary type of variance (material, labor, and overhead) is addressed with a discussion of possible inappropriate causal factors. Additionally, internal controls, graphic techniques, and other methods that can be implemented to combat fraud are provided.
Copyright © 2013, Cost Management/Thomson Reuters
Cost Management/Thomson Reuters
Raiborn, Cecily A.; Butler, Janet B.; and Zelazny, Lucian, "Standard Costing Variances: Potential Red Flags of Fraud?" (2013). Accounting Faculty Publications. 65.
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