Identify the Principles of Internal Control

question 120

Essay

Identify the principles of internal control.

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Definitions:

Overproduction

occurs when production exceeds the demand for a product, often leading to surplus and potential waste.

External Costs

Costs that are not borne by the producers or consumers directly involved in a transaction but are imposed on other parties or the environment.

True Cost

Encompasses all the economic, environmental, and social costs associated with the production and consumption of a good or service.

Resource

Raw materials, labor, capital, and other inputs used in the production of goods and services.