Indicate Whether Each of the Business Practices Listed Below Strengthens

question 11

Short Answer

Indicate whether each of the business practices listed below strengthens (S) or weakens (W) a company's system of internal control.
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a. Cashiers are not bonded.
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b. All payments are made with checks.
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c. Discouraging employees from taking paid vacations.
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d. Two people handle cash sales from the same cash register drawer.
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e. Using prenumbered sales tickets.

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Definitions:

Absorption Costing

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overheads - in the cost of a product.

Unit Product Cost

The total cost associated with producing a unit of product, including both direct materials and labor, as well as allocated overhead.

Period Cost

Costs that are expensed in the period in which they are incurred, not directly tied to the production process.

Variable Costing

A financial recording method that counts only the variable expenses related to production (direct materials, direct labor, and variable manufacturing overhead) in the pricing of products.