The Following Set of Items Describes Activities Completed by a Company

question 95

Multiple Choice

The following set of items describes activities completed by a company in purchasing and paying for merchandise.For each activity,identify whether or not the activity adheres to or violates sound internal control procedures.
- The clerk in the accounting department records both purchases and payments of invoices.

• A)Adheres to sound internal control procedures
• B)Violates sound internal control procedures
• C)Neither strengthens nor violates internal control

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Definitions:

Estimated Total

An approximation of the total value, cost, or quantity of a particular item or project.

Total Job Cost

The comprehensive cost associated with a specific job or project, including materials, labor, and overhead.

Total Job Cost

The complete cost of a particular job, including materials, labor, and overhead.

Overhead Applied

The allocated amount of indirect costs assigned to cost objects based on a predetermined rate.