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What Are Some Challenges in Establishing an Internal Control System

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What are some challenges in establishing an internal control system in a small business?


Definitions:

Fixed Costs

Costs that do not change with the level of production or sales, such as rent or salaries.

Flexible Budget

A budget that adjusts or varies with changes in volume or activity levels.

Level Of Activity

Refers to the volume of production or operations within a business, which can impact costs and efficiency.

Fixed Costs

Expenses that do not change with the level of production or sales over a short period.

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