Which of the Following Controls Can Minimize the Threat of Theft

question 95

Multiple Choice

Which of the following controls can minimize the threat of theft of inventory?

• 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:

Mechanized Work

Work processes that are performed using machinery and equipment to enhance efficiency and productivity.

Plantwide Overhead Rate

A single overhead rate calculated by dividing total factory overhead by the total base units used by all products, applied throughout the entire manufacturing plant.

Overhead Allocation Base

A measure or factor used to distribute overhead costs to products or services, such as machine hours or labor costs.

Machine Hours

A metric used in manufacturing to allocate costs based on the number of hours a machine is operated.