Which of the Following Is Not a Common Control for Ensuring

question 107

Multiple Choice

Which of the following is not a common control for ensuring inventory is secure and inventory counts are accurate?

• A)control of physical access to the inventory storage areas
• B)transfers of inventory with proper documentation
• C)sending "blind" copies of purchase orders to inventory control for data entry
• D)making physical counts of inventory at least once per year

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Definitions:

Predetermined Overhead Rates

An estimated rate used in cost accounting to allocate overhead costs to products or services based on a set formula.

Machine-Hours

A measurement of the amount of time a machine is operated, used in allocating costs or determining production levels.

Molding

The process of shaping a pliable raw material by using a rigid frame or model called a mold.

Assembly

The process of putting together various components or pieces to build a finished product.