Which of the Following Controls Is Not a Typical Control

question 92

Multiple Choice

Which of the following controls is not a typical control that affects multiple assertions for long-lived assets?

• A)Reviewing insurance policies for adequate replacement coverage of assets.
• B)Formal budgeting process with appropriate follow-up variance analysis.
• C)Periodic comparison of physical assets to subsidiary records with the general ledger.
• D)Periodic reconciliations of subsidiary records with the general ledger.

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Definitions:

Labor Cost

The total sum of all compensation given to employees for their services, including wages, benefits, and payroll taxes.

Total Revenue

The total amount of money a firm receives from the sale of its goods or services, calculated as the unit price times the quantity sold.

Wage Payment

The compensation that employees receive for their labor or services, typically expressed as an hourly rate or salary.

Profit-maximizing

A strategy or point where a business achieves its maximum level of profit by adjusting output and pricing.