Internal Control Is the Organizational Plan and Related Measures That

question 49

Multiple Choice

Internal control is the organizational plan and related measures that:

• A)encourages operational inefficiency.
• B)prevents the safeguard of assets.
• C)attempts to ensure accurate accounting records.
• D)Eliminates errors and fraud.

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Definitions:

User Cost

Refers to the cost associated with the consumption of a good which decreases its remaining value for future use.

Opportunity Cost

The expense incurred by not choosing the second-best option available during decision-making.

Marginal Product

The additional output produced as a result of employing one more unit of a particular input, assuming all other inputs remain constant.

Total Cost

The complete cost of production, including both fixed and variable costs, incurred by a business in the production of goods or services.