An Internal Control System Consists of All the Following Policies

question 5

Multiple Choice

An internal control system consists of all the following policies and procedures necessary to ensure except:

• A)Those necessary to ensure the safeguarding of an entity's assets.
• B)Those necessary to ensure that cash on hand and on deposit in checking accounts is beyond the minimal amount for ongoing operations.
• C)Those necessary to ensure the reliability of its accounting records.
• D)Those necessary to ensure the accomplishment of its overall objectives.

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Definitions:

Lowest Cost

The minimum expense incurred in producing or offering a good or service, often emphasized as a competitive advantage in markets.

Total Cost

The total expense of manufacturing, encompassing both constant and fluctuating expenses.

Variable Cost

Expenses that change in proportion to the activity of a business, such as costs for raw materials and labor directly tied to production output.

Variable Costs

Costs that vary directly with the level of production or sales volume.