Allowing Only the Treasurer to Sign Checks Is an Example

question 161

Multiple Choice

Allowing only the treasurer to sign checks is an example of

• A)documentation procedures.
• B)separation of duties.
• C)other controls.
• D)establishment of responsibility.

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Definitions:

Conversion Costs

The combined costs of direct labor and manufacturing overheads, which are incurred to turn raw materials into finished goods.

Units in Process

An inventory classification representing products partially completed in the manufacturing process, often evaluated at the end of an accounting period.

First-In, First-Out

An inventory valuation method where goods first acquired are the first to be sold.

Process Costing

A costing method used for homogeneous products, where costs are accumulated for a process or department and averaged over all units produced.