Which of the Following Would Most Likely Be Considered an Operating

question 78

Multiple Choice

Which of the following would most likely be considered an operating cost for a sales force when determining a sales budget?

• A) Variable production costs
• B) Advertising costs
• C) Product samples
• D) Development fees
• E) Product distribution costs

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Definitions:

Internal Control System

A process implemented by a company to provide reasonable assurance regarding the achievement of objectives related to operations, reporting, and compliance.

Control Activities

Policies, procedures, and mechanisms implemented by an organization to prevent or detect errors or frauds, ensuring the integrity of financial reporting and compliance with laws and regulations.

Risk Assessment

The process of identifying, evaluating, and estimating the levels of risk involved in a situation, followed by the coordination and economical application of resources to minimize, monitor, and control the probability and impact of unfortunate events.

Idle Cash

Cash that is not currently employed in any investment or operation, therefore not earning any return or interest.