Controls Which Provide a Means of Ensuring That the Physical

question 10

Multiple Choice

Controls which provide a means of ensuring that the physical counts are properly summarised, priced at the same amount as the unit records, correctly extended and totalled and included in the general ledger at the proper amount are known as:

• A) count quantity internal controls.
• B) inventory compilation controls.
• C) pricing internal controls.
• D) standard cost controls.

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Definitions:

Monthly Production Volume

The total count of units produced by a company in a month, reflecting the scale of its manufacturing operations.

Overhead Costs

Overhead costs are expenses related to the operation of a business that cannot be directly attributed to a specific product or service, such as rent and utilities.

Machine Setups

The process of preparing and adjusting machines for a specific production task, which can influence production efficiency and costs.

Relevant Range

The range of activity within which the assumptions about fixed and variable costs are valid.