The Controller at Horizon,Inc

question 152

Multiple Choice

The controller at Horizon,Inc.needs new computers for the accounting department.However,there are no guidelines specifying whether the controller can approve purchases of office equipment.
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:

Industry Profit

The total earnings generated by companies within a specific industry after covering all operating costs.

Marginal Cost

The financial outlay required to produce an additional unit of a product or service.

Fixed Cost

Expenses that do not change with the amount of goods or services produced, such as rent, salaries, and insurance premiums.

Cartel

An agreement among competing firms to control prices or exclude entry of a new competitor in a market.