The Statement That Is True in Relation to Engineered Cost

question 17

Multiple Choice

The statement that is true in relation to engineered cost centres is:

• A) Planning is more difficult in engineered cost centres than in discretionary cost centres
• B) The research and development department of an organisation is likely to be an engineered cost centre
• C) Service departments where there are repetitive activities are performed are more likely to be engineered cost centres
• D) It is difficult to link the service or product to the cost centre.

Understand the principles and methods used for preparing consolidated financial statements.

Calculate consolidated inventory and the impact of intercompany transactions.

Calculate and understand the treatment of goodwill, including impairment losses, in consolidated accounts.

Understand the adjustments required for non-controlling interest (NCI) in consolidated financial statements.

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Definitions:

Control Environment

The set of standards, processes, and structures that provide the basis for carrying out internal control across the organization.

Reasonable Assurance

An acceptable level of certainty or confidence in the accuracy of financial statements, provided by internal controls.

Petty Cash Fund

A small amount of cash on hand used for covering minor or incidental expenses in a business.

Cash Short

A situation where the actual amount of cash on hand is less than the recorded amount in the accounting records.