The Components of Internal Control Do Not Directly Include

question 96

Multiple Choice

The components of internal control do not directly include:

• A)Risk assessment.
• B)Inflation adjustment.
• C)Monitoring.

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Definitions:

Machine-Hours

A measure of the total time that machines are operating in a manufacturing process.

Predetermined Overhead Rate

The predetermined overhead rate is calculated by dividing estimated overhead costs by an allocation base, such as direct labor hours, to allocate overhead costs to products or services.

Manufacturing Overhead

All indirect costs related to the production process, such as the costs of maintenance, supplies, and utilities, excluding direct materials and direct labor.

Direct Labor-Hour

A measure of labor productivity that indicates the amount of labor input in terms of hours for producing one unit of output.