Which of the Following Is not a Limitation of Internal

question 104

Multiple Choice

Which of the following is not a limitation of internal control?

• A)Cost of establishing control procedures should not exceed their benefit.
• B)The human element.
• C)Collusion.
• D)The size of the company.

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Definitions:

Disinflation Costs

Entails the economic costs associated with reducing the rate of inflation, which can include increased unemployment and slower economic growth.

Short-run Phillips Curve

The short-run Phillips Curve depicts an inverse relationship between the rate of inflation and the unemployment rate within an economy over a short period.

Expected Inflation

The rate at which people predict prices will rise in the future, influencing saving and spending behavior.

Phillips Curve

An economic concept that illustrates an inverse relationship between the rate of unemployment and the rate of inflation in an economy.