The Purpose of Segregating the Duties of Distributing Payroll Checks

question 33

Multiple Choice

The purpose of segregating the duties of distributing payroll checks and hiring personnel is to:

• A)Separate the custody of assets from the accounting for those assets.
• B)Establish clear lines of authority and responsibility.
• C)Separate duties within the accounting function.
• D)Separate the authorization of transactions from the custody of related assets.

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Definitions:

Uniform Products

Products that are identical in quality and performance, manufactured to meet a standard specification.

Cost Accounting

An area of accounting that involves measuring, recording, and reporting product costs.

Product Costs

Costs that are directly tied to the production of goods or services, including raw materials and labor.

Job Order Cost System

An accounting system that accumulates costs for each individual job or project, suitable for businesses producing unique products or services.