Which of the Following Is an Essential Element of Internal

question 69

Multiple Choice

Which of the following is an essential element of internal control?

• A) Computerized accounting systems
• B) An outsourced internal audit function
• C) Procedures for proper authorization of transactions
• D) Verification by government agencies

---

Definitions:

Economies of Scale

The cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale.

Diseconomies of Scale

The phenomenon where a firm's per unit costs increase as it increases production, typically due to inefficiencies.

Learning-By-Doing

Acquiring skills and efficiency in a task through direct experience or practice, often leading to reduced costs and improved performance over time.

Dominant Strategies

In game theory, a strategy that is best for a player in a game regardless of the strategies chosen by the other players.