Control Activities Are the Component of Internal Control That Includes

question 42

True/False

Control activities are the component of internal control that includes control actions that have been established by policies and procedures.

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Definitions:

Overhead Cost

Expenses related to the ongoing operation of a business that cannot be directly traced to a specific product or service, like rent, utilities, and insurance.

Activity-Based Costing

A method of costing that apportions overhead and indirect expenditures to products and services related to the activities they entail.

Machine-Hours

A unit of measure representing the operation of machinery or equipment for one hour, often used in allocating manufacturing overhead costs based on actual or budgeted machine usage.

Overhead Cost

Expenses related to running a business that cannot be directly tied to a specific product or service, such as utilities, rent, and administrative salaries.