Which of the Following Controls Can Minimize the Threat of Misleading

question 24

Multiple Choice

Which of the following controls can minimize the threat of misleading reports?

• A)The use of innovative performance metrics.
• B)The use of periodic physical counts of inventory and reconciliation of those counts to recorded quantities.
• C)The use of encryption.
• D)The use of production planning systems.

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Definitions:

Profit or Loss

The financial outcome of an enterprise's operations, where profit results from revenues exceeding expenses and loss occurs when expenses surpass revenues.

Perfect Price Discrimination

A pricing strategy where a seller charges the maximum possible price for each unit consumed, extracting the maximum consumer surplus.

Profit

The profit achieved when the revenue generated by a business operation is greater than the expenses, costs, and taxes required to maintain that operation.

Profit-Maximizes

Refers to the strategy or the condition where a firm adjusts its production and pricing to achieve the highest possible profit.