The Decision to Extend Credit Beyond the Normal Credit Limit

question 71

Multiple Choice

The decision to extend credit beyond the normal credit limit is an example of

• A)independent verification
• B)authorization
• C)segregation of functions
• D)supervision

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Definitions:

Labor

Labor refers to the human effort, both physical and mental, used in the production of goods and services.

Fixed Cost

Costs that do not vary with the level of output or sales, such as rent, salaries, or insurance premiums.

Output

The total amount of goods or services produced by a company, industry, or economy within a particular period.