As a Form of Internal Control, Separation of Duties Can

question 23

Multiple Choice

As a form of internal control, separation of duties can be applied to which steps in the acquisition/payment process?

• A)Second step
• B)Fourth step
• C)Fifth step
• D)All of these

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Definitions:

Direct Materials Cost Variance

The difference between the budgeted cost of materials for products and the actual cost incurred.

Direct Labor Rate Variance

The difference between the actual cost of labor per hour and the standard or expected cost, multiplied by the total labor hours worked.

Direct Labor Time Variance

The difference between the actual labor time spent on a product and the standard labor time expected, affecting product costs.

Standard Costs

Predetermined or estimated costs that are used as benchmarks for measuring the performance of actual costs in manufacturing or production.