All of the following are internal control procedures that should be in place in the conversion cycle except
A)calculation and analysis of direct material and direct labor variances
B)retention of excess materials by work centers
C)physical count of inventory items on hand
D)limited access to raw material and finished goods inventories

Question

Quizplus · Accepted Answer

Retention of excess materials by work centers is not an internal control procedure in the conversion cycle as it increases the risk of waste, theft, and inaccurate inventory counts. The other options listed are all internal control procedures that should be in place, such as calculating and analyzing direct material and labor variances, conducting physical inventory counts, and limiting access to inventory items.

All of the Following Are Internal Control Procedures That Should