Separation of Duties Is an Internal Control Technique That Requires

question 22

Multiple Choice

Separation of duties is an internal control technique that requires all of the following except:

• A) Any individuals who have physical custody over cash should not also handle accounting records.
• B) Any employees handling cash should not have access to ledger accounts and bank statements.
• C) Any employee with custody of cash should also reconcile the bank statements to the ledger accounts but should not handle the accounting for cash.
• D) The responsibility for approving, signing, and mailing checks and handling cash disbursement documents and records should be separate functions.

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Definitions:

Production Estimates

Projections or forecasts of the volume or quantity of goods that a company plans to manufacture in a given period.

Units

In the context of business, units refer to the individual items or quantities of a product or service that are produced or sold.

Production Budget

An estimation of the total costs to produce a set amount of goods over a specific period.

Units

In accounting and manufacturing, this refers to the individual countable items or quantities of a product or service that a company produces or transacts in.