Application Controls

question 98

Multiple Choice

Application controls:

• A) can be classified as input controls, processing controls, and output controls.
• B) govern the design, security, and use of computer programs.
• C) apply to all computerized applications and consist of a combination of hardware, software, and manual procedures that create an overall control environment.
• D) include software controls, computer operations controls, and implementation controls.
• E) govern the security of data files in general throughout the organization.

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Definitions:

Total Cost

The aggregate amount of all types of costs incurred in producing a good or service, including direct, indirect, fixed, and variable costs.

Overhead Cost

Expenses not directly tied to the production of goods or services, such as rent, utilities, and administrative salaries.

Activity-Based Costing

A costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption.

Supporting Assembly

Components or materials put together as part of a larger item or system in the manufacturing process.