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nlexa [21]
3 years ago
5

An effective Financial Management Process is dependent on a number of factors. Crucial is the establishment of a sound system of

Internal Control to minimise risk and maximise effectiveness. Outline your understanding of Internal Control and why it is important to have a system in place as part of the Financial Management process. What are the key areas that need to be considered when implementing internal controls? Give an example of three (3) key controls that will assist in achieving these objectives
Business
1 answer:
Margaret [11]3 years ago
8 0

Answer:

<u><em>Internal control area</em></u>: it is responsible to stablish monitoring process in all the areas of the organization that prevent unlawful practices that are not in compliance with the regulations, laws or any external norm applicable to the company.

<u><em>Key areas:</em></u>  below find 3 areas as subjects important to control and 3 areas as departments within the company

  • prevention of reputational risk, prevention of credit risk, prevention of operational risk.
  • Internal audit area, Compliance area, Legal area.

<u><em>Key controls:</em></u>

  1. dual controls in the manufacturing of products prevent operational errors
  2. due dilligences of the commercial area regarding the customers that stablish a relationship with the company
  3. setting manuals that contain how the procedures must be done.
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Cinnamon Corp. started business in 2007, uses a periodic inventory system and uses the weighted average cost method. During 2007
Nesterboy [21]

Answer:

€4,883,000

Explanation:

The computation of cost of sales is shown below:-

Inventory = 35,000 ÷ €12

= 2,917 units

Weighted average cost of inventory

= (2,917 × €12) + (35,000 × €14)

=  €35,004 + €490,000

= €525,004

So weighted average cost = €525,004 ÷ €40,833.33

= €12.85

So, cost of sales = weighted average cost × sold units

= €12.85 × 38,000

= €4,883,000

3 0
3 years ago
When Max was hired to work in the warehouse of the automobile manufacturing facility, he was told that while he didn't have to j
zimovet [89]

Answer:

The answer is: Union shop

Explanation:

Union shop refers to an agreement between a company and a labor union making it mandatory that all employees must belong to the labor union or if they are hired recently, they must join the union within a certain period of time.

In this case the time given to Max was 8 weeks for him to join the union or he would not be able to work there.

5 0
3 years ago
Jarvey Corporation is studying a project that would have a ten-year life and would require a $450,000 investment in equipment wh
Nastasia [14]

Answer:

3 years

Explanation:

Since the income tax is ignored, so the operating cash flows would be

= EBIT + Depreciation - Income tax expense

= $105,000 + $45,000 - $0

= $150,000

The operating cash flows are same for ten years

And, the initial investment is $450,000

So, the payback period would be

= Initial investment ÷ Net cash flows

= $450,000 ÷ $150,000

= 3 years

6 0
3 years ago
Any point inside a production possibilities curve is:_____.
Anika [276]

Answer:

c

Explanation:

4 0
2 years ago
A company makes two products, A and B. A sells for $100 and B sells for $90. The variable production costs are $30 per unit for
Slav-nsk [51]

Answer:

True

Explanation:

Profit function would be maximised.

Profit = Revenue - Cost

Let units of both goods be = A ,B

Revenue per unit good A = 100

Revenue per unit good B = 90

Variable Cost per unit good A  = 30

Variable Cost per unit good B = 25

Profit Function = (100 - 30)A + (90 - 35)B

= 60A + 65B

{The function is right without including 'average fixed cost' part of 'total cost' in the function because : average fixed cost is a constant & constant figure doesn't effect optimisation (via differentiation , ∵ d (c) = 0)

5 0
3 years ago
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