This component of the ERM framework that encompasses the tone of an organization and sets the basis for how risk is viewed and addressed by an entity's people, including risk management philosophy and risk appetite, integrity and ethical values, and the environment in which they operate.
A. control activities
B. internal environment
C. risk assessment
D. risk response
Answer: B
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Discuss the six general categories of tests of IT controls
An opportunity cost is:
A) one that increases as output increases and decreases as output decreases. B) a cost that does not increase as output increases and does not decrease as output decreases. C) the benefit given up or sacrificed when one alternative is chosen over another. D) a cost that cannot be easily and accurately traced to a cost object.
A "sale" of goods happens when:
a. the parties agree. b. the parties sign the contract. c. title to the goods is passed. d. a promise to transfer title is made.
Baxter Products manufactures office furniture by using an assembly-line process. All direct materials are introduced at the start of the process, and conversion cost is incurred evenly throughout manufacturing. An examination of the company's Work-in-Process account for August revealed the following selected information:Debit side-August 1 balance: 600 units, 40% complete; cost, $44,600*Production started: 1,800 unitsDirect materials used during August: $90,000August conversion cost: $51,400Credit side-Production completed: 1,400 units*Supplementary records disclosed direct material cost of $30,000 and conversion cost of $14,600.Conversations with manufacturing personnel revealed that the ending work in process was 80% complete.Required:A. Determine the number of units in the August 31
work-in-process inventory.B. Calculate the cost of goods completed during August, and prepare the appropriate journal entry to record completed production.C. Determine the cost of the August 31 work-in-process inventory. What will be an ideal response?