In Manufacturing Units of Product A27, Mike Is Supposed to Use

question 57

Multiple Choice

In manufacturing units of Product A27, Mike is supposed to use three pounds of raw material for each unit. But, due to poor quality in a recent batch of raw materials, he used an average of four pounds. Which of the following internal controls would prevent the problem in the future?

• A)Closer inspection of deliveries
• B)More frequent performance evaluations for Mike
• C)Both A and B
• D)Neither A nor B

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Definitions:

Price Ceilings

Government-imposed limits on how high a price can be charged for a good or service, intended to protect consumers.

Agricultural Research

The systematic pursuit to increase understanding and improve techniques in farming, including crop production, livestock care, soil management, and pest control.

Farm Crop Insurance

A type of insurance that protects farmers against the loss of their crops due to natural disasters, such as floods, drought, and hail, or the loss of revenue due to declines in the prices of agricultural commodities.

Parity Concept

A principle in economics that describes a state where the purchasing power of two currencies is equal when a basket of identical goods is priced the same in both countries.