Internal Control Consists of the Plan of Organization and All

question 30

True/False

Internal control consists of the plan of organization and all of the related methods and measures adopted within a business to (a) safeguard its assets and (b) enhance the accuracy and reliability of its accounting records.

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Definitions:

Monthly Fixed Cost

Regular, consistent costs that do not vary with production volume or business activity level, calculated on a monthly basis.

Budgeted Sales

The projected amount of sales revenue that a company plans to achieve in a specific period, based on market analysis and company goals.

Ending Inventory

The monetary amount of merchandise on hand for sale when an accounting cycle concludes, established by the initial stock plus purchases less the expenses of goods sold.

Production Budget

An estimate of the total units to be produced in a given period, factoring in expected sales and inventory requirements.