Which of the Following Is Not an Example of an Internal

question 10

Multiple Choice

Which of the following is not an example of an internal control for the sales process?

• A)Credit committee review of credit limits on a quarterly basis
• B)Approved purchase order is reconciled to invoice
• C)Invoices automatically generated from order and dispatch document
• D)Application control that only allows orders to be processed against existing approved customers with enough unused credit limit

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Definitions:

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to specific activities, providing more accurate product costing.

Activity-Based Costing System

A refined method of allocating costs to products or services based on activities that drive costs, enhancing accuracy in costing.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services by identifying cost drivers.

Order Processing

The sequence of steps taken by a company to fulfill a customer order, from order receipt to delivery, including invoicing and shipment.