An Advantage of Using Systems Flowcharts to Document Information About

question 894

Multiple Choice

An advantage of using systems flowcharts to document information about internal control instead of using internal control questionnaires is that systems flowcharts:

• A) Identify internal control weaknesses more prominently.
• B) Provide a visual depiction of client's activities.
• C) Indicate whether control activities are operating effectively.
• D) Reduce the need to observe client's employees performing routine tasks.

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Definitions:

Budgeted Costs

Estimated financial expenditures forecasted for a specific future period, often categorized by type or department.

Departmental Overhead Rates

The allocation of indirect costs to specific departments based on a predetermined formula, used to accurately assign costs to products based on the departments they pass through.

Direct Labor Hours

The total hours of labor directly involved in the manufacturing or production of goods, often used as a basis for allocating manufacturing overhead.

Machine Hours

A measure of production time, representing the number of hours a machine is operated in the manufacturing process.