Vouching Selected Items from the Payroll Register to Employee Time

question 36

Multiple Choice

Vouching selected items from the payroll register to employee time sheets that have been approved by supervisory personnel provides evidence that:

• A)internal controls relating to payroll disbursements were operating effectively.
• B)payroll checks were signed by an appropriate officer independent of the payroll preparation process.
• C)only bona fide employees worked and their pay was properly computed.
• D)employees worked the number of hours for which their pay was computed.

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Definitions:

Factory Overhead

All indirect costs associated with manufacturing, including costs related to operating the factory such as utilities, maintenance, and salaries of indirect labor.

Product Costs

The costs directly associated with the production of goods, including direct material, direct labor, and manufacturing overhead expenses.

Sales and Administrative Expenses

Costs related to the selling of products and the management of the company, excluding production costs.

Direct Labor

Direct labor involves the work of employees that is directly attributable to the production of goods or services, such as the labor of a factory worker assembling a product.