Good Internal Controls Over the Write-Off of Uncollectible Accounts ________

question 101

Multiple Choice

Good internal controls over the write-off of uncollectible accounts ________.

• A)are optional if the company is smaller in size
• B)are typically expensive and cumbersome to implement
• C)are important to prevent write-offs from being used to conceal fraud in processing cash receipts
• D)are less important if accounts receivable are outsourced

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Definitions:

Volume Variance

A measure of the difference between the expected (budgeted) volume of sales or production and the actual volume, used in cost accounting and financial analysis.

Budget Variance

The difference between the budgeted or planned financial activity and the actual financial performance.

Volume Variance

The difference between the expected amount of output at the standard cost and the actual amount produced, measured at the standard cost.

Direct Labor-Hours

A measure of the total hours worked directly on the production of goods.