Which of the Following Best Describes Effective Internal Control Over

question 3

Multiple Choice

Which of the following best describes effective internal control over payroll?

• A) The preparation of the payroll must be under the control of the personnel department.
• B) The confidentiality of employee payroll data should be carefully protected to prevent fraud.
• C) The duties of hiring, payroll computation, and payment to employees should be segregated.
• D) The payment of cash to employees should be replaced with payment by checks.

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Definitions:

TVC Curve

A graphical representation showing the relationship between a firm's total variable costs and its output level.

TFC

stands for Total Fixed Costs, which are the costs that do not vary with the level of production or sales, such as rent or salaries.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced, showing the cost of each unit's share of the fixed expenses.

Average Variable Cost

Average variable cost is the total variable cost divided by the quantity of output produced, indicating the variable cost incurred per unit of output.