Which of the Following Most Likely Would Be an Internal

question 15

Multiple Choice

Which of the following most likely would be an internal control procedure designed to detect errors and fraud concerning the custody of inventory?

• A)Periodic reconciliation of work in process with job cost sheets.
• B)Segregation of functions between general accounting and cost accounting.
• C)Independent comparisons of finished goods records with counts of goods on hand.
• D)Approval of inventory journal entries by the storekeeper.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses and taxes from its total revenues.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating the amount contributed toward covering fixed costs and generating profit.

Units Sold

The total number of a product's units that have been sold during a certain period.

Variable Costing

A costing method that includes only variable production costs in the cost of goods sold and treats fixed costs as period expenses.