Controls in the Information Technology Area Are Classified into Preventive,detective,and

question 26

Multiple Choice

Controls in the information technology area are classified into preventive,detective,and corrective categories.Which of the following is preventive control?

• A)Contingency planning.
• B)Hash total.
• C)Echo check.
• D)Access control software.

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Definitions:

Labor Rate Variance

The difference between the actual hourly wage paid to workers and the standard or expected wage rate.

Standard Labor Rate

The predetermined hourly wage rate used in cost accounting to calculate labor costs.

Standard Hours Allowed

The number of hours that should have been worked for the actual production achieved, based on pre-established standards.

Standard Costing System

A cost accounting method that assigns a fixed cost to inventory and measures variances against actual production costs to manage business expenses.