Which of the Following Is the Most Important Control Activity

question 56

Multiple Choice

Which of the following is the most important control activity over acquisitions of property,plant,and equipment?

• A) Establishing a written company policy distinguishing between capital and revenue expenditures.
• B) Using a budget to forecast and control acquisitions and retirements.
• C) Analyzing monthly variances between authorized expenditures and actual costs.
• D) Requiring acquisitions to be made by user departments.

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