According to the CoCo (Criteria of Control) Guidance on Control

question 11

Multiple Choice

According to the CoCo (criteria of control) guidance on control integrated framework, a catastrophic computer failure would be classed as which category of risk?

• A) Financial risk
• B) Legal and regulatory risk
• C) Strategic risk
• D) Operational risk

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Definitions:

Direct Labor Standards

Direct Labor Standards define the expected labor time and cost necessary to produce a unit of product, facilitating budgeting and performance evaluation.

Work in Process

Inventory category that includes items currently being manufactured but not yet completed.

Standard Cost System

A standard cost system is an accounting method that uses cost estimates to predict the cost of production under normal conditions.

Direct Materials

Raw materials that are directly traceable to the finished product.