Cashiers at a Supermarket Have to Talk to a Manager

question 168

Multiple Choice

Cashiers at a supermarket have to talk to a manager before approving price changes at the register.Which internal control principle is being followed?

• A)Segregate duties
• B)Establish responsibilities
• C)Independently verify
• D)Restrict access

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Definitions:

Sunk Costs

Past expenditures that have already been incurred and cannot be recovered.

Incremental Cash Flows

The extra cash flow from operations generated by a company when it embarks on a new project.

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting to assess the profitability of an investment.

Incremental Cash Flows

The additional cash flows that a company expects to generate from a particular investment or project.