Policies and Procedures That Are Established to Protect and Manage

question 13

Multiple Choice

Policies and procedures that are established to protect and manage a company's assets are known as:

• A)a record-keeping system.
• B)an accounting system.
• C)internal controls.
• D)management controls.

---

Definitions:

Underapplied

A situation where the allocated manufacturing overhead costs are less than the actual overhead costs incurred.

Overapplied

A situation where the estimated cost allocated to a product or job exceeds the actual costs incurred.

Fixed Overhead Budget

A financial plan that estimates the fixed costs needed to produce goods or services over a specific period.

Volume Variance

The difference between the expected (budgeted) volume of activity and the actual volume, and its impact on the budgeted costs.