With a Limited Work Force and a Desire to Maintain

question 74

Multiple Choice

With a limited work force and a desire to maintain strong internal control,which combination of duties performed by a single individual presents the least risk exposure?

• A)maintaining the inventory ledger and recording the inventory journal voucher in the general ledger
• B)recording the inventory journal voucher in the general ledger and maintaining custody of inventory
• C)maintaining the cash disbursements journal and recording direct labor costs applied to specific jobs
• D)preparing the accounts payable journal voucher and recording it in the general ledger

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Definitions:

Perfectly Competitive

A market structure characterized by a large number of small firms, homogenous products, and free entry and exit, leading to optimal distribution of resources.

MR = MC

An economic principle where the marginal revenue (MR) equals the marginal cost (MC), often used as a condition for profit maximization.

ATC = AVC

Indicates that the Average Total Cost equals the Average Variable Cost, a condition found at the minimum point of the Average Total Cost curve in economic analysis.

Bottled Water

Packaged drinking water sold in plastic or glass bottles, often purified or spring water, catering to consumer demand for convenient and perceived safe drinking water.