Which of the Following Is a Benefit Provided by Internal

question 138

Multiple Choice

Which of the following is a benefit provided by internal control?

• A)It ensures timely collection of accounts receivables.
• B)It ensures that collusion will never happen.
• C)It guarantees that a business makes profit.
• D)It promotes operational efficiency.

Calculate total variable costs at a given level of activity within the relevant range.

Identify and calculate differential, opportunity, and sunk costs in decision-making scenarios.

Estimate incremental costs associated with a slight increase in production.

Compute the expected contribution margin given a specific activity level.

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Definitions:

Maintenance

Maintenance involves the actions taken to keep equipment, buildings, or software operating efficiently or to repair it to optimal functioning state.

Full Amortization

A loan repayment plan in which regular payments are made over the loan term, completely paying off both interest and principal by the end.

Penalties

Financial charges or other forms of punishment imposed on an entity for breaking rules, regulations, or agreements.

Synthetic Lease

A financing arrangement that combines elements of both an operating lease and a capital lease, often for tax or balance sheet management.