Inherent Risk Is Not a Characteristic of the

question 113

Multiple Choice

Inherent risk is not a characteristic of the

• A) Client's business.
• B) Substantive procedures.
• C) Major types of transactions.
• D) Effectiveness of the client's accountants.

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Definitions:

Cost Center

A decentralized unit in which the department or division manager has responsibility for the control of costs incurred and the authority to make decisions that affect these costs.

Plant Managers

Individuals responsible for overseeing the operations, productivity, and efficiency of a manufacturing plant.

Budgeted Costs

Projected expenses for a given period as part of an organization's financial planning.

Cost Center

A cost center is a division or department within an organization that does not directly add profit but incurs costs, such as HR or customer service.