Which of the Following Is Not a Factor That Relates

question 83

Multiple Choice

Which of the following is not a factor that relates to opportunities to misappropriate assets?

• A) inadequate internal controls over assets
• B) presence of large amounts of cash on hand
• C) inappropriate segregation of duties or independent checks on performance
• D) adverse relationships between management and employees

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Definitions:

Overapplied Overhead

A condition where the overhead allocated to goods produced exceeds the actual overhead costs incurred.

Cost of Goods Sold

The direct costs attributable to the production of goods sold in a company, including material and labor expenses.

Finished Goods Inventory

Merchandise completed in production and set to be offered to shoppers.

Predetermined Overhead Rate

A predetermined overhead rate is used to allocate indirect costs to products or services based on a predetermined formula.