One Example of a Type of Preventive Control Is ________

question 4

Multiple Choice

One example of a type of preventive control is ________.

• A)reviewing quarterly budget reports
• B)inspecting raw materials
• C)inspecting finished goods
• D)reviewing monthly sales reports
• E)scheduling annual performance appraisals

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Definitions:

Variable Manufacturing Overhead

Costs in the manufacturing process that fluctuate with the level of production output, such as utilities or materials that vary with production volume.

Cash Collected

The total amount of money received by a business during a given period from transactions.

Cash Collections

The process of gathering all cash or cash equivalents received from customers or clients for goods sold or services provided.

Finished Goods Inventory

This represents the value of all the goods that are completed and ready for sale but have not been sold yet.