Question: Consider how an individual could manipulate reported earnings by misstating the ending work's degrees of completion in the process inventory for a process cost accounting

Consider how an individual could manipulate reported earnings by misstating the ending work's degrees of completion in the process inventory for a process cost accounting system. Also, consider the ease with which this situation could continue, without detection, for subsequent accounting periods?

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Companies are known to manipulate earnings even if they have to sacrifice longterm value in order to smooth earnings Graham Harvey and Rajgopal 2005 Wall Street participants usually are known to focus ... View full answer

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