The internal control significance of the excess materials requisition is that it
A)indicates the amount of material released to work centers
B)identifies materials used in production that exceed the standard amount allowed
C)indicates the standard quantities required for production
D)documents the return to raw materials inventory of unused production materials

Question

Quizplus · Accepted Answer

Excess materials requisition is significant in internal control as it identifies materials used in production that exceed the standard amount allowed. This helps in detecting and preventing any potential waste or fraud in the production process. It also facilitates the evaluation of the accuracy of the standard material allowance, leading to better material management and cost control. The other options, such as A, C, and D, may be relevant to internal control in inventory management, but they do not pertain specifically to the excess materials requisition.

The Internal Control Significance of the Excess Materials Requisition Is