One of the Objectives of Internal Control Is To

question 21

Multiple Choice

One of the objectives of internal control is to:

• A) control the internal organization of the accounting department personnel and equipment.
• B) provide reasonable assurance that assets are safeguarded.
• C) prevent fraud and promote the social interest of the company.
• D) provide control over "internal-use only" reports and employee internal conduct.

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Definitions:

Standardized Products

Goods that are uniform in quality and specifications, making them interchangeable with similar products.

Production Department

A specific section within a manufacturing business that is responsible for the transformation of raw materials into finished products.

Organizational Unit

A subdivision within a company or organization designated by a defined business function or responsibility.

Process Costing

A method of costing used where identical products are produced, allocating average costs for each unit.