The Purpose of Segregating the Duties of Distributing Payroll Checks

question 14

Multiple Choice

The purpose of segregating the duties of distributing payroll checks and hiring personnel is to separate the

• A) Duties within the accounting function.
• B) Custody of assets from the accounting for those assets.
• C) Authorization of transactions from the custody of related assets.
• D) Operational responsibility from record keeping responsibility.

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Definitions:

Capacity

The maximum amount of work that a system, facility, or workforce can produce or handle over a given period.

Expected Profit

The predicted amount of profit calculated by estimating revenues and subtracting estimated costs and expenses.

Landfill

A site for the disposal of waste materials by burying them, and is the oldest form of waste treatment.

Optimal Quantity

The best or most favorable amount of a good or product to order or produce, taking into account factors like cost minimization and service level optimization.