Which of the Following Is a Characteristic of Foolproof Controls

question 16

Multiple Choice

Which of the following is a characteristic of foolproof controls?

• A) They usually exist in an organization's normal course of business.
• B) They are mostly machine or computer based.
• C) They make the control meaningful for the controller.
• D) They are at the risk of being redundant.
• E) They deal with the synchronization of the control processes.

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Definitions:

Responsibility Centers

Entities within an organization responsible for controlling revenue and expenses, influencing the operational and financial results.

Cost Centers

Parts of an organization where costs can be identified and directly attributed, but which do not directly generate revenue.

Profit Centers

Parts of an organization that directly contribute to its profit through their operations and are responsible for their own revenues and costs.

Decentralized Operations

A management structure where decision-making and operations are distributed among various autonomous units or departments within an organization.