An Organization's Control Environment Is Established and Maintained by the Internal

question 35

True/False

An organization's control environment is established and maintained by the internal auditing department.

---

Definitions:

Raw Materials Quantity Variance

The difference between the expected and actual quantity of raw materials used in production, affecting manufacturing costs.

Materials Price Variance

This is the difference between the actual cost of direct materials and the standard cost, multiplied by the quantity purchased.

October

The tenth month of the year in the Gregorian calendar, preceding November.

Variable Overhead Efficiency Variance

This is the difference between the expected (standard) cost of variable overheads based on actual production outputs and the actual variable overhead costs incurred.