The Objectives of Internal Control Are to

question 35

Multiple Choice

The objectives of internal control are to

• A) control the internal organization of the accounting department personnel and equipment
• B) provide reasonable assurance that assets are safeguarded and used for business purposes, business information is accurate, and laws and regulations are complied with
• C) prevent fraud, and promote the social interest of the company
• D) provide control over "internal-use only" reports and employee internal conduct

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Definitions:

Profitability

A measure of the efficiency and financial performance of a company, often assessed by the ratio of its profits to its revenues.

Generic Strategy

A fundamental strategy a company can adopt to achieve a competitive advantage, typically categorized as cost leadership, differentiation, or focus.

Competitive Pricing

A pricing strategy where a company sets its product prices based on the prices of competitors, aiming to offer more value or lower costs.

Differentiation

A marketing strategy that involves making a product or service stand out from competitors by emphasizing its unique features or benefits.