Which of the Following Internal Control Activities Could Best Prevent

question 48

Multiple Choice

Which of the following internal control activities could best prevent direct labor from being charged to manufacturing overhead?

• A)Reconciliation of work in process inventory with cost records.
• B)Comparison of daily journal entries with the factory labor summary.
• C)Comparison of period costs budgets and time sheets.
• D)Reconciliation of the unfinished job summary and production cost records.

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Definitions:

Bank Service Charge

Fees charged by a bank to its customers for account-related services.

Cash Receipts

The total amount of money, including cash, checks, and credit card payments, received by a business during a given period.

Internal Control Procedures

Processes implemented by a company to ensure integrity of financial and accounting information, promote accountability, and prevent fraud.

GAAP

GAAP stands for Generally Accepted Accounting Principles, which are standardized guidelines and practices for financial accounting and reporting in the U.S.