Which of the Following Is True in the Context of Characteristics

question 27

Multiple Choice

Which of the following is true in the context of characteristics of effective controls?

• A) For effective controls, the cost of using the controls should be more than the benefit derived from using them.
• B) Supervisors and employees want controls that unduly infringe on their privacy.
• C) An effective control system is one that helps the supervisor direct his or her efforts toward spotting significant problems.
• D) Normally, a supervisor is not expected to use the control system higher-level managers have established.

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Definitions:

Mutual Fund

An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, and other assets.

Investment Goal

The financial objective or target that an investor aims to achieve through investments.

Average Return

The mean amount of profit or loss generated by an investment over a specified period.

College Costs

The total amount of money required for a student to attend college, including tuition, room and board, books, and other related expenses.