A Credit Sale Is Made to a Customer,even Though the Customer's

question 72

Essay

A credit sale is made to a customer,even though the customer's account is four months overdue.Describe a specific internal control procedure that would prevent this from happening.

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Definitions:

Fixed Cost

Fixed costs are business expenses that remain unchanged regardless of the level of production or sales, such as rent, salaries, and insurance premiums.

Output

The cumulative sum of products and services generated by an economy.

Average Fixed Cost

The set expenses associated with production (not influenced by production scale) distributed over the number of items produced.

Marginal Cost

The increase in total production costs resulting from producing one additional unit of a product or service.