Otto Decided to Outsource the Payroll Function to Magna Plus

question 64

Multiple Choice

Otto decided to outsource the payroll function to Magna Plus.The controller of Otto should still

• A)recalculate the payroll and its remittance to ensure accuracy.
• B)review and authorize each individual payment to employees.
• C)review the payroll journal and compare the total hours worked with the payroll time records.
• D)inquire with the manager of Magna Plus if they suspect any unusual transactions.

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Definitions:

Fixed Costs

Expenses that do not vary with the level of output, such as rent, salaries, and loan payments.

Monopolistically Competitive

A market structure characterized by many firms offering products that are similar but not identical, leading to differentiated competition.

Total Revenue

The entirety of income a company secures from its sales or service activities over a certain period.

Total Cost

The sum of all costs incurred by a firm in producing a certain level of output.