A Company Is More Likely to Implement Internal Controls If

question 126

True/False

A company is more likely to implement internal controls if they view the cost of the controls to be less than the benefits provided.

---

Definitions:

Average Variable Cost

Average variable cost is the total variable costs of production divided by the number of units produced, indicating the average cost of producing each unit excluding fixed costs.

Average Total Cost

The total cost of production divided by the total quantity produced, indicating the cost per unit of output.

Marginal Cost

A measure of the expense associated with manufacturing an additional item of a particular good.

Total Variable Cost

The sum of all variable costs (costs that change with the level of output) associated with producing a specific amount of a good or service.