Which of the Following Internal Controls Would Help Ensure That

question 41

Multiple Choice

Which of the following internal controls would help ensure that existing payroll transactions are recorded?

• A)time records are approved by supervisors
• B)a time clock is used to record time
• C)independent preparation of payroll bank reconciliation
• D)comparison of payroll master file totals with general ledger control account

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Definitions:

Indirect Materials

Materials used in the production process that are not directly traceable to individual products or are not cost-effective to trace, such as lubricants and cleaning supplies.

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities and maintenance expenses.

Overapplied

A term used when the estimated costs, such as overhead, allocated to a product or project exceed the actual costs incurred.

Manufacturing Overhead Applied

The allocation of manufacturing overhead costs to individual units of product based on a predetermined rate or method.