Which of the Following Is Not a Feature of an Internal

question 161

Multiple Choice

Which of the following is not a feature of an internal control system?

• A) Separation of duties so that fraud or theft requires collusion
• B) Establishing clear lines of authority and responsibility
• C) Using unnumbered receipts and purchase orders
• D) Implementing physical controls such as locking cash in a safe

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Definitions:

Production Process

The sequence of operations or stages involved in the manufacturing or creation of a product.

Job-order Costing

A cost accounting system that assigns manufacturing costs to an individual product or batch of products, useful for customized orders.

Indirect Labor Cost

Wages and related expenses for workers who assist in or facilitate the production process but do not directly work on the product.

Direct Materials Cost

The expenditure on raw materials that are directly traceable to the production of a specific product.