When a Real-Time Computerized Processing System Is in Use,the Computer

question 18

Multiple Choice

When a real-time computerized processing system is in use,the computer controls can be strengthened by

• A)Providing for the separation of duties between data input and error listing operations.
• B)Using a systems development life cycle for authorization,user involvement,and testing of program modifications.
• C)Preparing batch totals to provide assurance that file updates are made for the entire group of transactions.
• D)Performing a validity check of an identification number before a user can obtain access to the computer files.

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Definitions:

Manufacturing Overhead

Indirect factory-related costs that support the production process but cannot be directly traced to specific products, such as maintenance and utilities.

Traditional Costing System

A cost accounting method that assigns overhead costs to products based on a predetermined overhead rate and actual levels of a cost driver.

Overhead Cost

Indirect expenses related to the general operation of a business, such as rent, utilities, and administrative salaries, not directly tied to any specific product or service.

Direct Labor-Hours

The total hours worked by employees who are directly involved in the production process, often used to allocate manufacturing overhead.