The Internal Control Process of Computing and Recording the Gains/losses

question 55

Multiple Choice

The internal control process of computing and recording the gains/losses for all fixed asset disposals will minimize the risk of:

• A)Omitted transactions
• B)Stolen goods
• C)Fraudulent acquisitions
• D)Invalid vendors

---

Definitions:

Complexity-Related

Pertaining to costs or processes that increase due to the complexity of operations, products, or services.

Order-Related

Pertaining to costs or activities that are directly tied to the processing of specific customer orders.

Raw Ingredients

Basic and unprocessed materials used in the manufacture or production of goods.

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities and resources that go into producing them, aiming to more accurately reflect the costs incurred.