City Advertising Services Hired a New Accounting Manager

question 120

Multiple Choice

City Advertising Services hired a new accounting manager.He signed a contract for a new accounting information system,but his position did not specify whether he was authorized to do so or not.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:

Bargaining Power

The relative capacity of parties in a negotiation to exert influence over each other, often influencing the terms and conditions of agreements.

Dominant Firms

Companies that have a major share of the market sales or exert significant influence in their industry.

Contestable Market

A market structure where there are no barriers to entry or exit, and hence, firms face potential competition.

Exceeds Marginal Cost

The condition where the revenue received from the sale of an additional unit of output is greater than the cost required to produce that additional unit.