Property Acquisitions That Are Misclassified as Maintenance Expense Would Most

question 31

Multiple Choice

Property acquisitions that are misclassified as maintenance expense would most likely be detected by an internal control system that provides for:

• A)Investigation of variances within a formal budgeting system.
• B)Review and approval of the monthly depreciation entry by the plant supervisor.
• C)Segregation of duties of employees in the accounts payable department.
• D)Examination by the internal auditors of vendor invoices and canceled checks for property acquisitions.

---

Definitions:

Output Control

A management technique focused on measuring and regulating the output of employees or production processes to meet organizational goals.

Network Structure

The arrangement and interconnection of nodes or elements in a system that define how they communicate or relate.

Centralized Decision-Making

A decision-making process where major decisions are made by a small group of people or an individual at the top of an organizational hierarchy.

Division Of Labor

The assignment of different parts of a manufacturing process or task to different people in order to improve efficiency.