Goldman Services Hired a New Clerk to Keep Custody of and Maintain

question 151

Multiple Choice

Goldman Services hired a new clerk to keep custody of and maintain all the equipment in the equipment yard.The clerk has not yet been adequately trained on the maintenance needs of the equipment.Which internal control procedure needs strengthening?

• A) assignment of responsibilities
• B) competent, reliable, and ethical personnel
• C) separation of duties
• D) documents

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Definitions:

Fixed Costs

Costs that do not change with the level of output or production, remaining constant over a specific period.

Variable Costs

Costs that change in proportion to the level of goods or services produced.

Sales Volume

The quantity of products or services sold by a company during a certain period of time.

Cost Advantage

The benefit or upper hand a business gains when it can provide a product or service at a lower price than its competitors, often through efficiencies, economies of scale, or lower input costs.