Labeling is important for three specific reasons, including promotional and legal reasons, the third reason is informational.
Labeling is an aspect of branding which makes it easier for product identification to be achieved. A label is a piece of information printed on the package of the product for recognition purposes; this also assist customers to make consumption decisions very quickly and easily.
Tests of Control are one by auditors to determine the effectiveness of the internal controls in the company in being able to detect accounting errors and anomalies.
If a company seems to have a moderate or low inherent risk the Auditors may or may not initiate Tests of Control due to this reduced risk.
If the company however, has either high or moderate or unusually high risk, the Auditors have to perform Tests of Control to determine where the company is going wrong.
It is used by Fed to manage the economy by increasing or decreasing the amount of loans being made
Explanation:
The Fed decides on required reserve ratio for the banks and other financial institutions; t can lower or raise it. Reserve ratio is the portion of all the money that bank are required to sets aside and hold onto; this means they are not allowed to lend that out to borrowers. This is a technique that is used to control the supply of money in the economy. By decreasing this ratio, banks will have more money to lend out and vice versa.
