A Good System of Internal Control Is Designed to Achieve

question 132

Multiple Choice

A good system of internal control is designed to achieve all of the following except

• A)efficiency of operations.
• B)reliability of financial reporting.
• C)compliance with relevant laws and regulations.
• D)attainment of target sales.

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Definitions:

Direct Labor-hours

The whole amount of production time by workers intimately involved in manufacturing.

Variable Manufacturing Overhead

Indirect manufacturing costs that fluctuate with production volume, such as utilities and indirect materials.

Standard Costing System

is an accounting method used to estimate the cost of production, based on standard costs for materials, labor, and overhead, for the purpose of budgeting and cost control.

Standard Machine Setups

Predetermined procedures and settings used to configure machinery for production runs, aimed at optimizing efficiency and quality.