Three Objectives of a Company's Internal Control System Should Be

question 59

Multiple Choice

Three objectives of a company's internal control system should be safeguarding assets, checking the accuracy and reliability of accounting data, and promoting operational efficiency.A fourth objective of a company's internal control system should be:

• A)Preventing embezzlement of assets
• B)Encouraging adherence to prescribed managerial policies
• C)Avoiding the payment of overtime to company employees
• D)Revising standards for production costs on a weekly basis

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Definitions:

Beginning Work

The value or quantity of work, inventory, or materials in process at the start of a period.

Work In Process

Inventory that includes goods that are in the production process but have not yet been completed or turned into final products.

Purifying Department

A specialized section of a production process where impurities are removed or product quality is enhanced.

Bottling Department

A specific area or division within a manufacturing facility where products are filled into bottles for distribution and sale.