An Internal Control System Consists of the Policies and Procedures

question 169

Multiple Choice

An internal control system consists of the policies and procedures managers use to do all of the following except:

• A) Urge adherence to company policies.
• B) Promote efficient operations.
• C) Ensure reliable accounting.
• D) Determine pricing for products.
• E) Protect assets.

---

Definitions:

Level of Output

The quantity of goods or services produced by a firm or economy during a specific time period.

Cobb-Douglas

A mathematical function used in economic models to represent the relationship between two or more inputs and the resulting level of output.

Production Function

A mathematical representation of the relationship between inputs used in production and the output generated from those inputs.

Capital Employed

The total amount of capital used for the acquisition of profits by a firm or project, including the value of all assets employed in a business.