What Specific Internal Control Procedure Would Prevent a Customer from Being

question 35

Essay

What specific internal control procedure would prevent a customer from being billed for all 50 items ordered although only 40 items were shipped?

---

Definitions:

Contribution Margin

The difference between sales revenue and variable costs of a product or service, indicating the amount contributing to covering fixed costs and generating profit.

Contribution Margin

The amount of revenue from sales that exceeds variable costs, contributing to covering fixed costs and generating profit.

Dollar Sales Volume

The total revenue generated from the sale of goods or services, expressed in monetary terms.

Target Net Profit

A specific financial goal for net income that a company aims to achieve within a certain period.