Key Controls Are Those

question 32

Multiple Choice

Key controls are those:

• A)Over significant risks.
• B)Over physical access.
• C)On which the auditor intends to rely.
• D)Designed by the audit committee to prevent management fraud.

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Definitions:

Contribution Margin

The amount by which sales revenue exceeds variable costs of production, indicating how much contributes to fixed costs and profits.

Marginal Cost

The cost incurred by producing one additional unit of a product or service, important for pricing and production decision-making.

Contribution Margin

The amount by which a product's sales revenue exceeds its variable costs, used to cover fixed costs and towards profit.

Marginal Cost

The additional cost incurred by producing one more unit of a product or service.