What Is NOT an Example of Internal Control Procedures That

question 6

Multiple Choice

What is NOT an example of internal control procedures that help prevent payroll fraud?

• A) Require mandatory vacations
• B) Outsource Payroll Administration
• C) Conduct periodic unannounced audits
• D) Make sure only one person handles payroll functions

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Definitions:

FIFO Method

An inventory valuation method that assumes the first items placed in inventory are the first sold or used.

Process Costing

A costing method used in industries where production is continuous, allocating costs to products based on the process they go through.

Assembly Department

A segment of a manufacturing process where components are put together to assemble a final product.

Process Costing

An accounting methodology used for homogenous products, where costs are accumulated to produce an average cost per unit across the entire production process.