Which of the Following Represents an Inherent Limitation of Internal

question 41

Short Answer

Which of the following represents an inherent limitation of internal controls?
A. Bank reconciliations are not performed on a timely basis.
B. The CEO can request a check with no purchase order.
C. Customer credit check not performed.
D. Shipping documents are not matched to sales invoices.

Differentiate between explicit and implicit costs in short-run total cost calculations.

Apply the principle of marginal analysis to business and economic decisions.

Understand the concept of marginal cost and how it affects decision-making in production.

Grasp the concept of marginal benefit and its importance in optimizing resource allocation.

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Definitions:

Business Cycle Peaks

The points in time at which an economy transitions from an expansion to a recession, marking the highest point of economic activity before downturn.

Last Recession

Refers to the most recent period of significant decline in economic activity across the economy, lasting more than a few months.

Winter

The coldest season of the year, occurring between autumn and spring.

Disinflation

A slowdown in the rate of inflation, marked by a gradual decrease in the general price level of goods and services over time.