Which of the Following Is not a Generally Recognized Internal

question 22

Multiple Choice

Which of the following is not a generally recognized internal control activity?

• A)Separation of the custody and record keeping responsibilities for any business activity
• B)Internal review of business transactions by the board of directors
• C)Internal review of business transactions by the internal auditors
• D)Independent verification of the work of one employee by another employee

Grasp the concept of utility and the influence of production processes on creating value-added goods and services.

Understand the impact of location decisions on manufacturing with respect to raw materials, market proximity, and logistics.

Recognize the role of technology in manufacturing, including robotics and computer-aided design/manufacturing systems.

Understand the importance of standardization in manufacturing and its impact on efficiency and product quality.

---

Definitions:

Inflation

The increase in the general price level of goods and services, leading to a decline in purchasing ability.

Conservative Economists

Economists who advocate for minimal government intervention in the economy, emphasizing free-market principles and fiscal conservatism.

Spending Cuts

Reductions in government or organizational spending, often implemented to reduce deficits or allocate resources more efficiently.

Contractionary Fiscal Policy

To fight inflation, the federal government raises taxes and/or cuts spending.