It Is Generally Possible for Small Companies to Have All

question 81

Multiple Choice

It is generally possible for small companies to have all of the following except for

• A) adequate documents and records.
• B) physical controls over assets.
• C) competent, trustworthy personnel.
• D) internal auditors.

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Definitions:

Machine-Hours

A measure of production time, calculated by multiplying the number of machines used by the number of hours they operate.

First Stage Allocations

This involves the assignment of overhead costs to different departments or cost centers as part of the process in activity-based costing.

Overhead Cost

All indirect costs associated with manufacturing or providing a service, not directly traceable to a specific product.

Activity-Based Costing

An accounting method that assigns costs to products and services based on the resources they consume.