Effective Internal Controls Are Designed to Help Organizations Achieve Which

question 53

Multiple Choice

Effective internal controls are designed to help organizations achieve which of the following objectives?

• A)Reliability of financial reporting
• B)Efficiency and effectiveness of operations
• C)Compliance with applicable laws and regulations
• D)All of the above

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Definitions:

Overhead Applied

Overhead applied is the portion of manufacturing overhead costs assigned to individual units of production based on a predetermined overhead rate.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to products based on a particular activity base.

Journal Entries

The records that document every financial transaction in the accounting system in chronological order.

Job Cost Sheets

A document or record that tracks all the costs associated with a specific job or project, including materials, labor, and overhead costs.