An Ideal Control Is

question 44

Multiple Choice

An ideal control is:

• A)A control procedure that reduces to practically zero the risk of an error or an irregularity taking place and not being detected
• B)A control procedure that is anticipated to have the lowest possible cost in relation to its benefits
• C)A control procedure that should always be implemented into a company's system due to the efficiency and effectiveness that will result from its implementation
• D)A control procedure that is always cost effective

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Definitions:

Raw Materials Inventory

The total cost of all raw materials that are yet to be used in production.

Gallons

A unit of volume measurement used primarily in the United States to quantify liquids.

Standard Costs

Predetermined costs for manufacturing a product, used for budgeting and assessing performance.

Cost of Goods Sold

The total direct costs attributable to the production of goods sold by a company, including materials and labor.