Which of the Following Represents the Proper Segregation of Duties

question 12

Multiple Choice

Which of the following represents the proper segregation of duties in the revenue process?

• A) The person who handles deposits also reconciles the cash account.
• B) A clerk in the treasury office opens mail and posts cash receipts.
• C) The inventory management and shipping functions are in different buildings.
• D) Sales representatives can check on the status of shipments and make adjustments to the order.

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Definitions:

Work in Process Inventory

The value of goods in various stages of production in a manufacturing company, not yet completed.

Work in Process

Inventory representing partially completed goods that are still in the process of production.

Direct Labor Costs

Expenses related to employees who are directly involved in the production of goods or services, such as wages for assembly line workers.

Direct Materials

Basic substances that can be directly linked to the production process of a product.