The Component of Internal Control That Includes the Policies and Procedures

question 115

Multiple Choice

The component of internal control that includes the policies and procedures that help ensure that management's directives are being carried out is:

• A)Monitoring.
• B)Information and communication.
• C)Risk assessment.
• D)Control activities.

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Definitions:

Marginal Revenue

The increase in income realized from the sale of one additional product or service unit.

Price Reductions

A strategy where businesses lower the prices of their goods or services to increase demand or sales.

Marginal Cost

The increase in total production cost that arises from producing one additional unit of a product or service.

Pure Monopolist

A market situation where a single company or entity exclusively offers a particular product or service, with no close substitutes.