Which Control Is Not a Part of the Fixed Asset

question 76

Multiple Choice

Which control is not a part of the fixed asset system?

• A)formal analysis of the purchase request
• B)review of the assumptions used in the capital budgeting model
• C)development of an economic order quantity model
• D)estimates of anticipated cost savings

---

Definitions:

Large Support Departments

Essential organizational units that provide services and support to the core functions of a business but do not directly contribute to profit generation.

Overhead Cost Drivers

Factors that significantly influence the incurrence of overhead costs, helping in the allocation of overheads to products or services based on their usage or consumption.

Management Accountant

A finance professional who specializes in internal financial processes, budgeting, and cost analysis to aid managerial decision-making.

Total Contribution Margin

The difference between sales revenue and variable costs, representing the total amount available to cover fixed expenses and generate profit.