Which of the Following Is NOT a Way That Management

question 39

Multiple Choice

Which of the following is NOT a way that management can establish proper control over the enterprise's affairs?

• A) There is a rotation of employees over a range of jobs.
• B) Record-keeping is combined with handling of assets.
• C) Insurance is carried on assets.
• D) Staff are required to take annual leave.

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Definitions:

Maintenance Costs

Expenses associated with the routine care and preservation of assets to keep them in operational condition.

Variable Operating Expense

Expenses that fluctuate in proportion to the amount of production or the volume of sales.

Sales Revenue

The income received from selling goods or services, which may include discounts and deductions for returned merchandise.

High-low Method

A method applied in cost accounting that calculates variable and fixed costs by analyzing the most and least active periods.