Cash Control Systems Are the Methods and Procedures Used to Ensure

question 89

Multiple Choice

Cash control systems are the methods and procedures used to ensure

• A)that current obligations are met
• B)that excess cash does not exist
• C)the safeguarding of cash
• D)that unused cash is invested

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Definitions:

Factory Rent

The cost associated with leasing a facility used for manufacturing or production purposes.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products or job orders, based on estimated costs and activity levels.

Machine Hours

A measure of production activity or cost allocation based on the number of hours a machine is operated.

Overapplied Overhead

Refers to the situation where the allocated overhead cost is more than the actual overhead incurred by a business.