Which of the Following Is Not a Reasonable Control for Fixed

question 93

Multiple Choice

Which of the following is not a reasonable control for fixed assets?

• A)Proper authorization is required for acquisition and disposal of fixed assets.
• B)Fixed asset records show the location of each asset.
• C)Fully depreciated assets are immediately disposed of.
• D)Depreciation policies are in writing.

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Definitions:

Job Order Cost Information

Details about the costs incurred for specific jobs or orders, including materials, labor, and overhead, used in job-order costing systems.

Actual Cost

The actual expense incurred in the production of goods or services, including all costs of raw materials, labor, and overhead.

Expected Costs

Estimated costs based on historical data, forecasts, or industry averages, used for budgeting and planning purposes.

Job Order Cost System

An accounting system that accumulates costs by individual jobs when each has distinguishable specifications, costs, and production processes.