Which of the Following Is Not Helpful to Reduce Risks

question 53

Multiple Choice

Which of the following is not helpful to reduce risks around incorrect cost allocations?

• A)Use appropriate overhead allocation algorithms.
• B)Independent review and approval of overhead cost allocations.
• C)Use technologies such as bar code or RFID to support accurate and timely tracking and recording of inventor movements.
• D)Insist on using activity-based costing.

---

Definitions:

Model of Business Reporting

A framework or standard outlining the principles and requirements for presenting financial and non-financial information about a company's performance and position.

Financial Data

Information about financial transactions, assets, liabilities, revenues, and expenses of a business or individual.

Recognition Principles

The criteria and rules that govern when and how revenue and expenses are recognized in the accounting period they occur.

Expenses

Costs incurred by a business in the process of earning revenues, including operational costs, rent, utilities, and employee salaries.