Sound Internal Control Can Be Described as Separating All of the Following

question 108

Multiple Choice

Sound internal control can be described as separating all of the following duties and responsibilities except for

• A) Transaction authorization.
• B) Recordkeeping.
• C) Custody of, or direct access to, assets.
• D) Hiring of employees.

Understand the concept of controllable margin and its use in profit center evaluations.

Distinguish between cost centers and profit centers and their evaluative metrics.

Identify and differentiate between variable, fixed, and controllable costs.

Appreciate the importance of budget reports for managerial feedback and control.

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Definitions:

Neurotic

A term describing individuals who are prone to emotional instability, anxiety, and other psychological stresses.

Conscientiousness

A personality trait characterized by being diligent, careful, and organized.

Agreeableness

A personality trait that reflects a person's tendency to be compassionate, cooperative, and friendly toward others.