Which of the Following Is a Control That May Be

question 76

Multiple Choice

Which of the following is a control that may be implemented to ensure all sales that occur are recorded in the general ledger?

• A)use of prenumbered shipping,invoice and sales documents.
• B)use of prenumbered statements,inventory lists and credit memos.
• C)reconciliation of invoices with customer statements.
• D)use of pre-authorized price lists.

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Definitions:

Overhead Costs

Expenses related to the day-to-day operations of a business that are not directly attributable to specific product units or services.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on their use of resources.

Production Departments

Designated areas or segments in an organization responsible for the creation or assembly of products.

Apply Overhead

The process of allocating manufacturing overhead costs to produced goods based on a predetermined rate or base.