Internal Control Policies and Procedures Have Limitations Not Including

question 40

Multiple Choice

Internal control policies and procedures have limitations not including:

• A) Establishing responsibilities.
• B) Human error.
• C) Collusion.
• D) Cost-benefit principle.
• E) Human fraud.

---

Definitions:

Service Department Charges

Costs allocated to the various service departments within an organization, typically for internal accounting purposes.

Income from Operations

The profit realized from a business's ongoing operations, calculated before taxes and interests, reflecting the efficiency of the core business activities.

Service Department Charges

These are the costs allocated to the production departments from service departments within a company, assisting in accurately assessing the cost of production.

Income from Operations

An alternative term for Operating Income, highlighting earnings generated from a company's regular business activities.