Which of These Is Not a Measure of Good Internal

question 55

Multiple Choice

Which of these is not a measure of good internal control?

• A) Banking cash daily
• B) Reconciling a control account with its subsidiary ledger
• C) Combining authority to purchase goods and sign cheques
• D) Requiring all employees to take annual leave

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Definitions:

Marginal Cost

Marginal cost is the additional cost incurred from producing one more unit of a good or service.

Producing Bagels

The process of making bagels, which involves mixing, shaping, boiling and then baking dough, typically in a commercial or artisanal bakery setting.

Total Cost

The complete cost of producing a specific quantity of goods or services, including fixed and variable costs.

Average Fixed Cost

Production's unchanging overheads split by the volume of goods produced.