The Appropriate Separation of Duties Does Not Include

question 28

Multiple Choice

The appropriate separation of duties does not include:

• A)authorization to execute transactions.
• B)recording of transactions.
• C)custody of assets involved in transactions.
• D)data preparation.

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Definitions:

Financial Reporting

The method of generating reports that reveal the financial condition of a company to its management, investors, and governmental bodies.

Conversion Cost

The total expense of converting raw materials into finished goods, including both direct labor and manufacturing overhead.

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured, including costs for management, equipment maintenance, and factory utilities.

Direct Labor Cost

This cost includes wages and benefits paid to employees who are directly involved in producing goods or providing services.