The COSO Enterprise Risk Management Integrated Framework Covers Five Components

question 14

Multiple Choice

The COSO enterprise risk management integrated framework covers five components of internal control.Which of the following is not a component?

• A)Governance and culture.
• B)Strategy and objective-setting.
• C)Performance.
• D)Risk management.

Understand the distinction between different rates used to assign manufacturing overhead costs to products.

Identify the conditions under which activity-based costing (ABC) is more applicable than traditional costing systems.

Comprehend why a shift to ABC improves the accuracy of product costs.

Appreciate the potential benefits and reasons for adopting an ABC system in diverse organizational contexts.

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Definitions:

Major Benefits

Significant advantages or positive outcomes that arise from a specific action, policy, or product.

Mergers

The process of combining two or more companies into a single entity, typically to achieve synergies, expand market share, or improve competitive positions.

Culture

The shared beliefs, values, practices, and social behaviors of a particular group or society.

Types of Cultures

Various classifications of societal or organizational cultures based on shared values, beliefs, and practices.