Which Internal Control Activity Is Followed When Management Authorizes the Purchasing

question 49

Multiple Choice

Which internal control activity is followed when management authorizes the purchasing department to order goods and services for the company?

• A) Segregation of duties
• B) Physical security
• C) Independent verification
• D) Establishing responsibility

Identify specific revenue models from given business scenarios.

Distinguish between tangible and intangible revenue models.

Explain the role of third parties or intermediaries in revenue generation.

Understand how businesses plan and implement multiple revenue streams.

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Definitions:

Fixed Production Costs

Expenses that do not fluctuate with the level of production output, such as depreciation on factory buildings and salaries of certain managers.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life.

Period Cost

Costs that are expensed in the period they are incurred and are not directly tied to production activity.

Indirect Costs

Costs that cannot be directly linked to the production or sale of a specific product or service, such as administration, rent, and utilities.