Which of the Following Is Not One of the Interrelated

question 23

Multiple Choice

Which of the following is not one of the interrelated components and principles of the COSO Enterprise Risk Management Framework 2013?

• A)Risk assessment.
• B)Control activities.
• C)Substantive testing.
• D)Information and communication.

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Definitions:

Variable Cost

Costs that vary in total in direct proportion to changes in the level of activity or production volume.

Differentiates

Distinguishes or separates entities or products by characteristics, qualities, or features, making them distinctive or unique in the market.

Opportunity Cost

The price paid for missing out on the alternative that ranks second best when deciding.

Excess Capacity

Refers to a situation where a company has more production ability than is necessary for the current level of demand.