Indicate Whether Each of the Following Statements Regarding Internal Controls

question 109

True/False

Indicate whether each of the following statements regarding internal controls is true or false.
-Internal controls can be divided into accounting controls and administrative controls

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Definitions:

Contribution Margin

The amount remaining from sales revenue after all variable expenses are deducted, indicating how much contributes to covering fixed costs and generating profit.

Variable Costs

Costs that change in proportion to the level of production or sales activity within a business.

Fixed Costs

Expenses that do not change with the level of production or sales over a certain period, such as rent, salaries, and insurance.

Variable Costs

Costs that vary in direct proportion to changes in levels of production or sales.