An Organization's System of Internal Control Is Designed Primarily To

question 24

Multiple Choice

An organization's system of internal control is designed primarily to:

• A)ensure that no employees steal the organization's property.
• B)increase efficiency by letting one employee handle all aspects of a transaction from beginning to end.
• C)ensure that the organization's balance sheet will always balance.
• D)provide an operating framework for all employees as they work to achieve the organization's goals.

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Definitions:

Total Product

Total product refers to the total quantity of output produced by a firm within a given period as a result of inputs like labor and capital.

Average Product

The output per unit of input, calculated by dividing total product by the number of units of input.

Marginal Product

is the additional output that results from using one more unit of a particular input, holding other inputs constant.

Average Product

The output produced per unit of input, calculated by dividing total output by the number of units of input.