Listed Below Are Examples of Matters That May Be Reportable

question 92

Multiple Choice

Listed below are examples of matters that may be reportable conditions. Indicate the nature of each event by using the following code letters:
Deficiencies in Internal Control Design
Failures in the Operation of Internal Control
-Absence of other control techniques considered appropriate for the type and level of transaction activity.
_____

• A)Failures in the Operation of Internal Control
• B)A system fails to provide complete and accurate output consistent with the

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Definitions:

Unit Selling Price

The amount of money charged to the customer for each individual unit of a product or service.

Unit Variable Costs

The variable costs that are incurred for each unit of production, including materials and labor directly associated with the manufacturing of the product.

Operating Income

The income a business receives after subtracting operating costs from its gross profit.

Fixed Costs

Costs that do not change with the level of production or sales activities, such as rent, salaries, and insurance premiums.