Which of the Following Is NOT a Requirement for an Effective

question 62

Multiple Choice

Which of the following is NOT a requirement for an effective control system?

• A)It should be understandable to everyone who uses it.
• B)It should not permit changes in dynamic settings.
• C)It should expose deviations as they occur.
• D)It shouldyield timely information.

---

Definitions:

Market Value

The existing rate at which an asset or service is offered for buy or sell within the marketplace.

Amortize Intangible Assets

The process of systematically reducing the recorded cost of intangible assets over their useful life or legal life, whichever is shorter.

Useful Lives

The estimated time period that an asset is expected to be used by a business, contributing to its revenue generation.

R&D Costs

Expenses associated with the research and development of a company's goods or services, which may include labor, materials, and overhead related to the creation and improvement of products or services.