Which of the Following Items Is NOT a Limit to the Effectiveness

question 41

Multiple Choice

Which of the following items is NOT a limit to the effectiveness of internal controls?

• A)Poorly defined controls
• B)Managers overriding controls
• C)Not separating duties in departments
• D)Making sure employees are less distracted on the job

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Definitions:

Average Cost Flow

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the weighted average cost of all inventory items available for sale.

Ending Inventory

Ending inventory is the total value of goods available for sale at the end of an accounting period.

Inventory Items

Inventory items refer to the goods and materials that a business holds for the ultimate goal of resale or processing.

Gross Amount

The total sum before any deductions are made, such as taxes or discounts.