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.

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Definitions:

Prime Costs

The immediate expenses involved in producing a product, encompassing both the raw materials and the direct labor costs.

Conversion Costs

Conversion costs are expenses incurred when manufacturing a product or providing a service, specifically including both direct labor costs and manufacturing overhead costs.

Baker's Wages

The compensation paid to individuals who are employed to bake goods, usually considered a variable cost in the production process.

Direct Labor

The workforce directly involved in manufacturing goods or providing services, whose wages are considered part of the cost of goods sold or cost of services.