Which of the Following Constitutes a Control Weakness Related to Factory

question 39

Multiple Choice

Which of the following constitutes a control weakness related to factory equipment?

• A) A policy requiring all purchases of factory equipment to be made by the department in need of the equipment.
• B) Checks issued in payment of purchases of equipment are not signed by the controller.
• C) Factory equipment replacements are generally made when estimated useful lives, as indicated in depreciation schedules, have expired.
• D) Proceeds from sales of fully depreciated equipment are credited to other income.

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Definitions:

Pure Chase Strategy

A production strategy where the production rate is adjusted to match demand, minimizing inventory levels at the cost of potentially greater adjustment costs.

Part-Time Workers

Employees who work less than the standard full-time hours, typically offering flexibility and cost savings for businesses while accommodating the workers' other commitments.

Full-Time Workers

Employees who work the full number of hours defined as standard for a certain period, typically characterized by a fixed schedule.

Mixed Strategy

A planning strategy that uses two or more controllable variables to set a feasible production plan.