The Internal Control That Requires an "Independent Verification of Calculations

question 20

Multiple Choice

The internal control that requires an "independent verification of calculations and amounts" satisfies the objective of

• A)occurrence.
• B)completeness.
• C)accuracy.
• D)posting and summarization.

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Definitions:

Rapid-change Industries

Industries characterized by fast-paced innovation and technological advancements, requiring companies to quickly adapt to maintain competitiveness.

Inventory Holding Costs

encompass all expenses related to storing unsold goods, including warehousing, insurance, depreciation, opportunity cost, and spoilage, significant in inventory management decisions.

Pilferage

The theft of small quantities of goods, typically from an employer or a retail setting, often considered a form of inventory shrinkage.

Scrap

Material that is discarded or deemed as waste during the manufacturing process, often due to defects, excess, or irrelevance to the final product.