What internal control or procedure(s) would provide protection against the following threats?A factory supervisor wrote off a robotic assembly machine as being sold for salvage but actually sold the machine and pocketed the proceeds.A factory supervisor accessed the production planning file and inflated the standards for work completed in his department. Consequently, future performance reports show favorable budget variances for that department.Overproduction of a slow-moving product resulted in excessive inventory that had to eventually be marked down and sold at a loss

1. Control procedures for preventing the machines sold from the company supervisor: The company…

Answered: A factory supervisor wrote off a…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter14: Quality And Environmental Cost Management

Section: Chapter Questions

Problem 26E: Which of the following would be a hidden quality cost? a. Inspecting and testing prototypes b....

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What internal control or procedure(s) would provide protection against the following threats?

A factory supervisor wrote off a robotic assembly machine as being sold for salvage but actually sold the machine and pocketed the proceeds.
A factory supervisor accessed the production planning file and inflated the standards for work completed in his department. Consequently, future performance reports show favorable budget variances for that department.
Overproduction of a slow-moving product resulted in excessive inventory that had to eventually be marked down and sold at a loss

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

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