Four Pairs of Internal Controls Are Listed Below

question 52

Multiple Choice

Four pairs of internal controls are listed below. Identify the pair that accomplishes the same goal based on the four purposes of internal controls as discussed in the text.

• A) Safeguarding assets, preformatted data entry screens.
• B) Ensuring financial statement reliability, daily cash deposits.
• C) Promoting operating efficiency, physical security.
• D) Encouraging compliance with management directives, user training.

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Definitions:

Direct Labor Dollars

The cost of labor that can be directly attributed to the production of goods or services.

Indirect Labor

The wages of employees who are not directly involved in producing goods but support the production process, such as maintenance staff and supervisors.

Cost of Production

The total expense incurred in manufacturing a product or providing a service, including raw materials, labor, and overhead costs.

Raw Materials

The basic, unprocessed or partially processed materials used to produce goods and finished products in manufacturing.