Which of the Following Is NOT a Key Issue in Controlling

question 78

Multiple Choice

Which of the following is NOT a key issue in controlling and managing receivables?

• A) Separate cash-handling, credit, and accounting duties to keep employees from stealing cash collected from customers.
• B) Extend credit only to customers who are most likely to pay.
• C) Pursue collection from customers to maximize cash flow.
• D) Separate the responsibility for custody and protection of inventory assets from the accounting for inventory assets.

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Definitions:

Direct Labor-Hours

The total hours of work directly involved in manufacturing goods or providing a service.

Variable Overhead

The costs that fluctuate with the level of production output and may include expenses such as utilities and indirect materials.

Direct Materials

Raw materials that can be directly attributed to the manufacturing of a product.

Direct Labor-Hours

Overall hours employees spend directly involved in the fabricating process.