A Properly Prepared Systems Flowchart Can Be Used To

question 23

Multiple Choice

A properly prepared systems flowchart can be used to:

• A)Evaluate internal controls in the AIS.
• B)Determine which processes are completed manually in the AIS.
• C)Both evaluate internal controls in the AIS and determine which processes are completed manually in the AIS.
• D)Neither evaluate internal controls in the AIS nor determine which processes are completed manually in the AIS.

---

Definitions:

Income Tax Rate

The percentage at which an individual or corporation is taxed on their income.

Relevant Range

The range of activity within which the assumptions about fixed and variable costs in cost-volume-profit analysis are valid.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Contribution Margin

The difference between sales revenue and variable costs, representing the amount that contributes towards covering fixed costs and generating profit.