Gerry Jonhas Been Asked to Review Manual or Automated Procedurthat

question 11

Multiple Choice

Gerry Jonhas been asked to review manual or automated procedurthat typically operate at a business process level and apply to the processing of transactions by individual applications. What kind of controls is Gerry going to be assessing?

• A) output controls
• B) general controls
• C) a and b
• D) application controls

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Definitions:

Direct Labor Cost

The total cost of employment for employees who directly contribute to the production of goods or services, including wages and benefits.

Machine-Hours

A measure of the total time that machines are operating in a manufacturing process.

Predetermined Overhead Rate

The predetermined overhead rate is calculated by dividing estimated overhead costs by an allocation base, such as direct labor hours, to allocate overhead costs to products or services.

Manufacturing Overhead

All indirect costs related to the production process, such as the costs of maintenance, supplies, and utilities, excluding direct materials and direct labor.