The following set of items describes activities completed by a company in purchasing and paying for merchandise. For each activity, identify whether or not the activity adheres to or violates sound internal control procedures. Extensions and footings on purchase invoices are verified before the invoices are approved for payment
a. Adheres to sound internal control procedures
b. Violates sound internal control procedures
c. Neither strengthens nor violates internal control
a
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The gross profit method is not used to
A) replace the year-end physical inventory. B) check the cost generated by a perpetual inventory system. C) determine the cost of inventory destroyed by fire. D) develop a sales budget.
Which of the following is a characteristic of services?
A) low barriers to entry B) high switching costs C) low rivalry D) reduced competition
Follow effective ____________________
a. proofreading strategies b. grammar rules c. style patterns d. document guidelines
Craigmont Company's direct materials costs are $3,000,000, its direct labor costs total $7,000,000, and its factory overhead costs total $5,000,000. Its prime costs total:
A. $12,000,000. B. $8,000,000. C. $15,000,000. D. $10,000,000. E. $5,000,000.