Controls that provide a means of ensuring that the physical counts are properly summarized,priced at the same amount as the unit records,correctly extended and totalled,and included in the general ledger at the proper amount are known as
A)standard cost records.
B)pricing internal controls.
C)compilation internal controls.
D)count quantity internal controls.

Question

Quizplus · Accepted Answer

Controls that ensure the accuracy of physical counts, pricing, extension, and summarization of inventory records are compilation internal controls. These controls ensure that the inventory records are accurately reflected in the general ledger. Standard cost records relate to costing rather than physical inventory count accuracy, and pricing, and count quantity internal controls are not comprehensive enough to cover all aspects of inventory management.

Controls That Provide a Means of Ensuring That the Physical