Which of the Following Are the Three Functions That Should

question 48

Multiple Choice

Which of the following are the three functions that should be performed by separate departments or individuals?

• A) Authorization, purchasing, and custody of assets
• B) Record keeping, validation, and classifying
• C) Record keeping, validation, and authorization
• D) Authorization, record keeping, and custody of assets

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Definitions:

Diminishing Returns

An economic principle stating that adding an additional factor of production results in smaller increases in output after a certain point.

Marginal Output

The additional quantity of output that is produced by using one more unit of a given input.

Negative Returns

Occurs when a company or investment loses more money than it earns or when costs exceed revenues.

MC Curve

The MC Curve, or Marginal Cost Curve, represents the change in total cost that arises when the quantity produced is incremented by one unit. It is crucial in determining the optimum production level.