Internal Control Is a Process Designed to Guarantee the Achievement

question 62

True/False

Internal control is a process designed to guarantee the achievement of the objectives of reliable financial reporting,compliance with laws and regulations,and operating efficiency.

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Definitions:

Labour Efficiency Variance

The difference between the actual labor hours used and the standard labor hours expected, multiplied by the standard labor rate.

Direct Labour Used

The total effort, measured in hours or costs, of workers directly involved in the manufacturing process of a product.

Variable Manuf. Overhead

Costs that vary with production volume, such as utilities and materials used in manufacturing.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, valued at standard cost.