Which Deficiency Exists If a Necessary Control Is Missing or Not

question 80

Multiple Choice

Which deficiency exists if a necessary control is missing or not properly implemented?

• A) control
• B) significant
• C) design
• D) operating

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Definitions:

Fixed Cost

A cost that remains constant, in total, regardless of changes in the level of activity within the relevant range. If a fixed cost is expressed on a per unit basis, it varies inversely with the level of activity.

Special Order

A one-time customer order, often at a negotiated price, that is outside the company's standard range of products or services.

Irrelevant

Pertains to information or factors that do not influence or impact a decision-making process.

Split-off Point

The stage in a production process where joint products are identifiable or separable into individual products.