An internal control questionnaire indicates that an approved receiving report is required to accompany every check request for payment of merchandise. Which of the following procedures provides the greatest assurance that this control is operating effectively?
A. Select and examine receiving reports and ascertain that the related canceled checks are dated no earlier than the receiving reports.
B. Select and examine canceled checks and ascertain that the related receiving reports are dated no earlier than the checks.
C. Select and examine receiving reports and ascertain that the related canceled checks are dated no later than the receiving reports.
D. Select and examine canceled checks and ascertain that the related receiving reports are dated no later than the checks.
Answer: D
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Which of the following is a characteristic of a successful control system?
A. strategic and results-oriented B. timely, accurate, and objective C. realistic, positive, and understandable D. flexible and encourages self-control E. inflexible to optimize control
Which of the following are prepared at the request of external parties?
A) Sales proposals B) Solicited proposals C) Unsolicited proposals D) Internal proposals E) External proposals
Robert Inc uses the standard costing method. The company's main product is a fine-quality headphones that normally takes 0.5 hour to produce. Normal annual capacity is 5,000 direct labor hours, and budgeted fixed overhead costs for the year were $8,750. During the year, the company produced and sold 5,800 units. Actual fixed overhead costs were $6,000. Using the information provided for Robert
Inc, compute the fixed overhead cost variance. A) $2,750 (F) B) $925 (U) C) $3,675 (U) D) $5,800 (U)
Explain the differences between a "think-global, act-global" strategy and a "think-global, act-local" strategy.
What will be an ideal response?