Preventive Controls Are Designed to Provide Reasonable Assurance That the Correct

question 91

True/False

Preventive controls are designed to provide reasonable assurance that the correct program is used for processing,all transactions are processed,and the transactions update appropriate files.

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Definitions:

Cost Reconciliation

The process of analyzing and adjusting the differences between the reported cost and the actual cost.

Direct Method

An approach in cost accounting used to allocate service departments' costs directly to production departments without intermediate steps.

Service Department

An organizational unit that provides support services to other parts of an organization, rather than directly contributing to revenue generation.

Pediatrics Department

A specialized medical department dedicated to the care, diagnosis, and treatment of infants, children, and adolescents.