Internal Control Systems

question 71

Multiple Choice

Internal control systems:

• A)are the same from company to company.
• B)are regulated by the Securities and Exchange Commission.
• C)vary from company to company.
• D)guarantee the safeguard of assets.

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Definitions:

Fixed And Variable Cost

Costs that remain constant regardless of the level of production or sales (fixed), and costs that vary directly with the level of production or sales (variable).

Planning Budget

A budget based on the level of output planned at the start of the budgetary period.

Spending Variance

A financial metric that compares the actual amount spent on a specific item to the budgeted or expected amount.

Cost Formulas

Equations or models used to calculate the costs associated with manufacturing a product or delivering a service.