The Framework to Be Used by Management in Its Internal

question 21

Multiple Choice

The framework to be used by management in its internal control assessment under requirements of SOX is the:

• A)COSO internal control framework.
• B)COSO enterprise risk management framework.
• C)COBIT framework.
• D)All of the choices are correct.

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Definitions:

Machine Hours

A measure of the total time that a machine is operated, used in calculating manufacturing costs and allocating expenses.

Commercial Washer

A heavy-duty washing machine designed for extensive use in a commercial setting, such as in laundromats or hotels.

Plantwide Overhead Rate

A single overhead rate calculated by dividing total factory overhead by total base units, used to allocate overhead costs to products.

Activity-Based Costing

A costing methodology that assigns costs to products and services based on the activities that go into producing them, with the aim of providing more accurate product cost information.