Which of the Following Statements Relating to Application Controls Is

question 25

Multiple Choice

Which of the following statements relating to application controls is ?

• A) They impact on the procedures used for data entry, data processing and output
• B) They include procedures for purchasing new computers
• C) They are not designed to prevent or detect a material misstatement in the financial report
• D) They include the use of passwords and other security measures to minimise the risk of unauthorised access

---

Definitions:

Constant Opportunity Costs

A condition in which the opportunity cost of producing one more unit of a good remains constant irrespective of the quantity.

Decreasing Opportunity Costs

A situation where the cost of forgoing the next best alternative decreases as more units of a product or service are produced.

Capital Goods

These are physical assets used in the production process to manufacture goods and services, including buildings, machinery, and equipment.

Consumer Goods

Products and services that are consumed or used by individuals, as opposed to those purchased by businesses or industries.