Control of Inventory Should Begin as Soon as the Inventory

question 119

Multiple Choice

Control of inventory should begin as soon as the inventory is received. Which of the following internal control steps is not done to meet this goal?

• A) check the invoice to the receiving report
• B) check the invoice to the purchase order
• C) check the invoice with the person who specifically purchased the item
• D) check the invoice extensions and totals

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Definitions:

Standard Wages

Predetermined rates of pay for specific tasks or jobs, used in budgeting and variance analysis.

Standard Hours Allowed

The predetermined amount of time that should be required to complete a specific task or produce a certain amount of goods.

Direct Labour Hours

The total amount of time spent by workers directly involved in the production process, contributing to the manufacturing of a product.

Standard Wage Rate

The predetermined rate of pay for a specific task or job, often used in manufacturing to set baseline labor costs.