The Responsibility to Establish, Maintain and Monitor Internal Controls Is

question 42

Multiple Choice

The responsibility to establish, maintain and monitor internal controls is that of the entity's:

• A) Accounting department.
• B) Internal auditor.
• C) Management.
• D) External auditor.

Calculate and analyze direct materials variances.

Calculate and analyze direct labor variances.

Calculate and analyze fixed manufacturing overhead variances.

Record financial transactions using a standard cost accounting system.

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Definitions:

Master Budget

A comprehensive financial planning document that includes all of the subsidiary budgets within an organization, projecting its financial activities for the period.

Raw Materials Production Needs

The quantity and type of raw materials required to meet production schedules for finished goods.

Finished Goods

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

Raw Materials Cost

The expense associated with the raw materials consumed in producing a finished product.