Which of the Following Is the Best Internal Control Over

question 45

Multiple Choice

Which of the following is the best internal control over fixed assets?

• A) Analyze monthly variances between authorized and actual expenditures.
• B) Establish a written company policy distinguishing between capital and revenue expenditures.
• C) Require acquisitions to be authorized by user departments.
• D) Use a budget to control acquisitions and retirements.

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Definitions:

Average Prices

The mean amount of money required to purchase a particular set of goods or services.

Supermarket Chains

Companies that own or operate multiple supermarket stores across different locations.

Blocking Variable

A variable introduced in an experimental design to account for potential variation, thereby reducing confounding effects.

Incentive

A benefit, reward, or cost that motivates an individual or organization to act in a certain way.