A Computer Operator Is Allowed to Work as a Programmer

question 18

Multiple Choice

A computer operator is allowed to work as a programmer on a new payroll software project.Does this create a potential internal control problem?

• A) Yes, the computer operator could alter the payroll program to increase her salary.
• B) Yes, this is a potential problem unless the computer operator is supervised by the payroll manager.
• C) No, ideal segregation of duties is not usually possible, and operators are often the best at programming changes and updates.
• D) No, as long as the computer operator separately accounts for hours worked in programming and in operations.

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Definitions:

Absorption Costing

is an accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) in the cost of a product.

Unit Product Cost

The total cost (including materials, labor, and overhead) to produce a single unit of a product.

Break-even Sales

The amount of revenue required to cover both the variable and fixed costs of a business, resulting in no profit and no loss.

Southern Division

A specific geographic segment of a company, typically focused on operations within the southern region of a country or market.