Which of the Four Basic Measures, If Properly Installed and Implemented

question 134

Multiple Choice

Which of the four basic measures, if properly installed and implemented may help prevent inventory fraud?

• A) Proper documentation, segregation of duties, independent checks and physical safeguards
• B) Proper documentation, segregation of duties, independent checks and inventory control
• C) Proper documentation, physical padding, independent checks and physical safeguards
• D) prenumbered affiliations, segregation of duties, independent checks and physical safeguards

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Definitions:

Average Cost of Production

The total cost of production divided by the quantity of output produced, indicating the cost to produce each unit of output.

Total Profit

The net profit a company earns, calculated by deducting all costs from its total income.

Profits

The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes involved in maintaining the operation.

Total Costs

The aggregate cost of producing goods or services, inclusive of fixed and variable expenses.