The Expected Cost of an Item That Is Estimated at $5,000

question 14

Multiple Choice

The expected cost of an item that is estimated at $5,000 with a task contingency multiplier of 1.2 is:

• A)$4,167.
• B)$5,000.
• C)$5,200.
• D)$6,000.

Realize the significance of combining different control methods (internal, external, clan, bureaucratic) for effective management.

Understand the legal frameworks (e.g., Sarbanes-Oxley Act) governing corporate governance and their impact on controlling corporate behavior.

Appreciate the purposes of internal control strategies and the need for trust within these systems.

Understand the concept of clan control and its reliance on collective identity and cultural values within an organization.

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Definitions:

Cash Receipts Journal

A specialized accounting journal used to record all receipts of cash.

Equality

In financial terms, refers to the state where two values, amounts, or figures are of the same value or balance each other out.

One-Column Purchases Journal

A simplified accounting ledger that records only the purchases of goods and services in a single column, typically for small businesses or specific types of transactions.

General Ledger

The primary accounting record of a company that contains all the account balances needed to prepare financial statements.