Under a System of Sound Internal Controls, If a Company

question 49

Multiple Choice

Under a system of sound internal controls, if a company sold defective goods, the return of those goods from the customer should be accepted by the:

• A)Receiving Clerk
• B)Sales Clerk
• C)Purchasing Clerk
• D)Inventory Control Clerk

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Definitions:

Joint Costs

Costs that are incurred up to the split-off point in a process that produces joint products.

Value Chain

The major business functions that add value to a company's products and services, such as research and development, product design, manufacturing, marketing, distribution, and customer service.

Vertically Integrated

A business structure in which a company controls multiple stages of the production process, from raw materials to final product delivery.

Effective Utilization

The extent to which a company or system makes optimal use of resources, time, and capacity.