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Discuss How the Principles of Internal Control Apply to Cash

question 44

Essay

Discuss how the principles of internal control apply to cash receipts over-the-counter by giving several examples of good control measures that should be implemented.


Definitions:

Selling Prices

The amounts of money charged to customers in exchange for goods or services.

Plantwide Predetermined Manufacturing Overhead Rate

A single overhead rate calculated by dividing total estimated manufacturing overhead costs by an estimated allocation base, used across an entire plant or facility.

Departmental Predetermined Overhead Rates

A method of calculating overhead rates for specific departments within a company, rather than using a single overhead rate for the entire organization.

Machine-Hours

A measure of production output or operational time, calculated by the number of hours a machine is run during a specific period.

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