Concept: Criminal misappropriation of property occurs when a person dishonestly misappropriates or converts movable property to his own use.
Step 1: Understand the act in the question.
The ornaments are removed from a dead body and are used by an unauthorized person.
\[
\text{Unauthorized taking and use of ornaments} \Rightarrow \text{Dishonest use of property}
\]
Step 2: Distinguish from theft.
Theft requires moving property out of the possession of a person without consent. A dead body is not treated in the same way as a living person's possession.
Step 3: Apply criminal misappropriation.
When the unauthorized person dishonestly uses the ornaments, the act amounts to criminal misappropriation of property.
\[
\text{Dishonest conversion to own use} \Rightarrow \text{Criminal misappropriation}
\]
Therefore, the correct answer is option (C).