Principles of Internal Control Include All of the Following Except

question 42

Multiple Choice

Principles of internal control include all of the following except:

• A)Apply technological controls.
• B)Maintaining security by having one person track and record assets.
• C)Perform regular and independent reviews.
• D)Separate recordkeeping from custody of assets.
• E)Divide responsibilities for related transactions.

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Definitions:

Economic Profit

The difference between total revenue and the total cost of inputs (including opportunity costs), reflecting the additional gain from business operations beyond breaking even.

Economic Loss

The decrease in financial value or resources due to an event, action, or inaction, encompassing factors such as direct, indirect, and opportunity costs.

Production Costs

Expenses directly related to the creation and manufacturing of a product, including raw materials, labor, and overhead.

Explicit Costs

These are direct, out-of-pocket payments for expenses incurred by a business, such as wages, rent, and materials.