Which of the Following Best Prevents the Theft of Customer

question 88

Multiple Choice

Which of the following best prevents the theft of customer checks received in the mail?

• A)Custody by the accounts receivable manager.
• B)Restricted endorsements placed on the check as soon as it arrives.
• C)Weekly deposits to a secure bank.
• D)Reconciliation of bank accounts each month.

---

Definitions:

Direct Labor-Hours

A measure of the total hours worked by employees who are directly involved in the manufacturing process or production of goods.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated before the period begins by dividing estimated overhead costs by an estimated allocation base.

Machine-Hours

A measurement of the amount of time machines are operated in the production process, used as an allocation base for applying manufacturing overhead.

Direct Labor-Hours

A measure of the total hours worked directly on a specific product or service by employees.