An Example of Good Internal Control Over Cash Is to Have

question 29

True/False

An example of good internal control over cash is to have the person responsible for physically handling all cash perform the bank statement reconciliations.

---

Definitions:

Fabricating Department

A section within a manufacturing company where raw materials are assembled or processed into finished products.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory value based on the average cost of all items available for sale during the period.

Equivalent Unit

A concept in cost accounting used to allocate costs to partially completed goods, equating them to an amount of finished goods.

Fabricating Department

A section within a manufacturing facility where raw materials are transformed into components or products through various processes like cutting, assembling, or molding.