Administrative Controls

question 183

Multiple Choice

Administrative controls

• A) are concerned with efficient operations and adherence to managerial policies.
• B) are concerned with the reliability of the financial statements.
• C) are the responsibility of the company's auditors.
• D) are concerned primarily with safeguarding assets.

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Definitions:

Overhead Applied

The portion of overhead costs allocated to the production of goods, based on a predetermined rate or method.

Milling Department

A specific division within a manufacturing facility where milling processes, such as grinding, crushing, or cutting, are performed on raw materials.

Plantwide Predetermined Manufacturing Overhead Rate

A single overhead rate calculated for an entire manufacturing plant, used to allocate manufacturing overhead costs to products based on a common activity base, such as machine hours.

Machine-Hours

A measure of the total hours that machinery is in operation during the production process.