Which Statement Best Illustrates Internal Control

question 17

Multiple Choice

Which statement best illustrates internal control?

• A) "I don't cheat because I don't want to hurt my chances of getting into law school."
• B) "I don't cheat because I might get caught and severely punished."
• C) "I don't cheat because it would really upset my parents if I got caught."
• D) "I don't cheat because it's immoral."

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Definitions:

Activity Cost Pools

A grouping of all the costs related to a particular activity used in activity-based costing for more accurate allocation of overhead costs.

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities they require, providing more accurate product costing.

Direct Labor

involves labor costs directly associated with the manufacturing of products, easily traceable to the end product.

Overhead Costs

Expenses related to the operation of a business that are not directly tied to a specific product or service, such as rent, utilities, and administrative expenses.