80) Control over inventory includes
D) Answer A and B are correct.
81) Inventories serve as a buffer between different operations in a
A) just-in-time production system.
B) materials as needed system.
C) perpetual inventory system.
D) Answers A and B are correct.
82) Which of the following objectives in a property accounting application system relates to the process of periodic comparison of physical assets with the accounting records?
A) Provide for appropriate depreciation and/or amortization calculations
B) Maintain adequate records that identify assets with description, cost, and physical location
C) Provide for reevaluation for insurance and replacement cost purposes
D) Provide management with reports for planning and controlling individual asset items
83) The file or record that is essentially a subsidiary ledger for tangible assets, such as land, buildings, machinery, and equipment, is the
A) fixed assets register.
B) fixed assets control ledger.
C) property master ledger.
D) property control ledger.
84) Which of the following is the best internal control over fixed assets?
A) Analyze monthly variances between authorized and actual expenditures.
B) Establish a written company policy distinguishing between capital and revenue expenditures.
C) Require acquisitions to be authorized by user departments.
D) Use a budget to control acquisitions and retirements.
85) Which of the following is the best internal control over disposals of fixed assets?
A) Periodically analyze the scrap sales revenue and the repairs and maintenance expense accounts.
B) Periodically compare removal work orders and disposal authorization.
C) Separate the duties of the official authorizing a disposal and the official approving removal work orders.
D) Use serial numbers to identify fixed assets that could be sold.
86) The employee who is responsible for the custody of investments should
A) authorize the purchase of additional investments.
B) maintain the investment register.
C) open the safety deposit or depository area only when a second employee is present.
D) conduct periodic physical inventories comparing the investment register to the investments on hand.
87) Which of the following is not a common internal accounting control procedure in a property business process?
A) Having physical inventories of property taken periodically under the supervision of staff who are responsible for the custody of the assets
B) Requiring authorization by an official or committee for expenditures over a certain amount
C) Reconciling detailed subsidiary property records with the control accounts at least annually
D) Having the property appraised periodically for insurance purposes
88) Solids modeling, finite-elements analysis, and automated drafting are common capabilities of
D) MRP II.
89) Software that often includes components to facilitate process planning, line analysis, and statistical process control, among other tasks, is called
B) MRP II.