Which of the Following Is Not a Primary Concern of Internal

question 30

Multiple Choice

Which of the following is not a primary concern of internal control?

• A) Efficiency of company operations
• B) Fairness of financial statements
• C) Accuracy of accounting records
• D) Safeguarding assets

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Definitions:

Direct Labor-Hours

The sum of hours contributed by workers directly participating in the creation of a product or the execution of a service.

Variable Manufacturing Overhead

Costs in manufacturing that vary directly with the level of production output, such as utilities and raw materials.

Fixed Manufacturing Overhead

Costs associated with manufacturing that remain constant regardless of the level of production, such as rent and salaries of managerial staff.

Machine-Hours

A measurement unit used in accounting and manufacturing to allocate costs to products based on the number of hours machines are operated during the production process.