All of the Following Are Internal Control Procedures That Should

question 81

Multiple Choice

All of the following are internal control procedures that should be in place in the conversion cycle except

• A)calculation and analysis of direct material and direct labor variances
• B)retention of excess materials by work centers
• C)physical count of inventory items on hand
• D)limited access to raw material and finished goods inventories

---

Definitions:

Government-Mandated

Regulations or requirements imposed by governmental bodies that must be followed by individuals, businesses, or other organizations.

Demand Curves

A graphical representation showing how the quantity demanded of a good or service varies with its price.

Supply Curves

A graphical representation of the relationship between the price of a good and the quantity of the good supplied by producers.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; in other words, when capital goods are distributed in the most beneficial manner among the population.