Campaign Services Hired a New Accounting Manager

question 94

Multiple Choice

Campaign 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.
In the above situation,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:

High-margin Items

Products or services that generate a significantly higher percentage of profit compared to their cost of production or acquisition.

Low-margin Items

Products or services that generate a minimal profit margin, often sold to attract customers or achieve volume sales.

Contribution Margin Ratio

A financial metric indicating the portion of sales revenue that is not consumed by variable costs and therefore contributes to covering fixed costs.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit.