Which of the Following Is Not an Element of Internal

question 155

Multiple Choice

Which of the following is not an element of internal control?

• A) risk assessment
• B) monitoring
• C) information and communication
• D) cost-benefit considerations

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Definitions:

Direct Labor Cost

The expense related to the work of employees directly involved in the production of goods or services, such as wages for assembly line workers.

Direct Labor-Hours

Direct labor-hours are the total number of hours worked by employees directly involved in the manufacturing process, used as a basis for assigning labor costs to products.

Direct Materials

Raw materials that can be directly identified with the production of specific goods or services and are a major component of product costs.

Budgeted Production

The planned level of production output, calculated based on demand forecasts and inventory requirements.