Which of the Following Internal Control Activities Most Likely Would

question 60

Multiple Choice

Which of the following internal control activities most likely would prevent direct labor hours from being charged to manufacturing overhead?

• A) Periodic independent counts of work-in-process for comparison to recorded amounts.
• B) Comparison of daily journal entries with approved production orders.
• C) Use of time tickets to record actual labor worked on production orders.
• D) Reconciliation of work-in-process inventory with periodic cost budgets.

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Definitions:

Utility Function

A mathematical representation that ranks the preferences of consumers or entities based on the consumption of goods and services.

Preferences

Refers to the ordering of different alternatives by individuals based on their values, satisfaction, or utility they provide.

Expensive Goods

Products or services that have a high price relative to their intrinsic value or compared to other alternatives in the market.

Utility Function

A mathematical representation of how different combinations of goods or services can provide different levels of happiness or satisfaction to a consumer.