Internal Auditors Are Responsible to

question 26

Multiple Choice

Internal auditors are responsible to

• A) the board of directors.
• B) management.
• C) both A and B.
• D) neither A nor B.

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Definitions:

Variable Costs

Costs that vary depending on how much is produced or sold.

Break-Even Point

The production level or sales volume at which total revenues equal total expenses, resulting in no net loss or gain.

Contribution Margin

The amount remaining from sales revenue after variable costs are deducted, contributing to covering fixed costs and generating profit.

Break-Even Point

The financial point at which costs equal revenues, so there is no net loss or gain.