Hardy Company mass-produces eight different products. The controller who is interested in strengthening internal controls over the accounting for materials used in production would be most likely to implement a(n):

Question

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Implementing a perpetual inventory system would provide real-time tracking of materials used in production, improving internal controls over materials accounting. This system would allow the controller to know the quantity and value of materials on hand at any given time, reducing the risk of errors and fraud. The economic order quantity system and job order cost accounting system relate to managing inventory and production costs, but do not directly address materials accounting controls. Separation of duties among production personnel would be a good internal control measure but would not address the specific concern of accounting for materials used in production.

Hardy Company Mass-Produces Eight Different Products