Internal Control Policies and Procedures Have Limitations Not Including

question 62

Multiple Choice

Internal control policies and procedures have limitations not including:

• A)Human error.
• B)Human fraud.
• C)Cost-benefit principle.
• D)Collusion.
• E)Establishing responsibilities.

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Definitions:

Direct Labor Rate

The cost per hour for labor directly involved in manufacturing goods or providing services.

Production Budget

A plan that outlines the expected production in units, considering sales forecasts and inventory requirements.

Direct Labor-Hours

The total hours worked directly on the production of goods or the provision of services.

Direct Labor Rate

The cost per hour for direct labor incurred in the production of goods.