The Person Responsible for Reconciling Sales Invoices to Customer Orders

question 2

Multiple Choice

The person responsible for reconciling sales invoices to customer orders does not access to the company's master price list in order to correctly compute sales.This is an example of a(n) :

• A)operating deficiency.
• B)design deficiency.
• C)training deficiency.
• D)management deficiency.

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Definitions:

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced in a business.

Fixed Costs

Expenses that do not change with the level of production or sales.

Depreciation Tax Shield

The Depreciation Tax Shield refers to the reduction in income tax a company achieves through deducting depreciation expenses, thus lowering its taxable income.

Straight-Line Method

An accounting method of depreciation where an asset's cost is reduced equally over its useful life.