The Principles of Internal Control Include All of the Following

question 230

Multiple Choice

The principles of internal control include all of the following except

• A) establishment of responsibility.
• B) combining of duties.
• C) physical mechanical and electronic controls.
• D) independent internal verification.

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Definitions:

Forward Buy

A purchasing strategy where a buyer purchases larger quantities of goods in advance to take advantage of lower prices or to hedge against future price increases.

Profitability

The ability of a business to generate more revenue than the expenses incurred, resulting in a profit.

Manufacturing Capacity

The maximum amount of products a factory or production facility can produce within a given time period.

Inventory Costs

Expenses associated with holding and managing goods or materials until they are sold or used in production.