Which of the Following Situations Represents an Internal Control Weakness

question 3

Multiple Choice

Which of the following situations represents an internal control weakness in the payroll department?

• A)Payroll department personnel are rotated in their duties.
• B)Paychecks are distributed by the employees' immediate supervisor.
• C)Payroll records are reconciled with quarterly tax reports.
• D)The timekeeping function is independent of the payroll department.

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Definitions:

Two-Part Tariffs

A pricing strategy where the cost to a customer consists of a fixed fee plus a variable charge based on usage or quantity purchased.

Volume Based

A pricing or discount strategy where the cost depends on the quantity of goods purchased or produced.

Quantity Discounts

A pricing strategy where the price per unit of an item decreases as the quantity purchased increases, used to encourage larger orders.

Multi-Echelon

Multi-Echelon describes a supply chain model that involves multiple levels of inventory storage and distribution points, from manufacturers to end-users, to optimize inventory levels and delivery times.