Which of the Following Is not an Internal Control Activity

question 105

Multiple Choice

Which of the following is not an internal control activity for cash?

• A)The number of persons who have access to cash should be limited.
• B)The functions of record keeping and maintaining custody of cash should be combined.
• C)Surprise audits of cash on hand should be made occasionally.
• D)All cash receipts should be recorded promptly.

---

Definitions:

Factory Overhead Cost

Every cost involved in manufacturing that isn't categorized as direct labor or direct materials.

Factory Heating

An operational expense associated with maintaining an appropriate temperature within a manufacturing or production facility, often categorized as a facility overhead cost.

Conversion Costs

The combination of direct labor and manufacturing overhead costs incurred to convert raw materials into finished products.

Direct Materials

The raw materials that are consumed in the manufacturing process and are directly allocated to the product.