In Order to Achieve the Objective of Managing Risk, Management

question 66

Multiple Choice

In order to achieve the objective of managing risk, management should establish control structures that include, at a minimum:

• A)Accounting internal controls.
• B)Accounting internal controls, IT controls, corporate governance, enterprise risk management, and IT governance.
• C)IT controls, IT governance, corporate governance, and accounting internal controls.
• D)IT controls and accounting internal controls.

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Definitions:

Finished Goods

Products that have completed the manufacturing process but have not yet been sold or distributed to the end customer.

Goods Sold

Represents the total quantity of goods that have been sold to customers during a specific accounting period.

Cost Accounting Systems

Systems that measure, record, and report product costs.

Product Costs

The expenses directly associated with creating a product, including materials, labor, and manufacturing overhead.