Sharon, the Newly Hired Manager at the Independently Owned Seasons

Multiple Choice

Sharon, the newly hired manager at the independently owned Seasons Restaurant, has discovered that calculations of actual food costs include the cost of providing employee meals. However, employee meals are not included as costs in establishing the restaurant's standard food costs. Which of the following principles of developing an effective control process has been violated?

A) Information about actual operating results must be simple and easy to collect.
B) Actual information must be collected in a manner consistent with the procedures and formats used to establish performance standards.
C) Checks on the controls should be part of the control system itself.
D) Actual information generated for control purposes should be compatible with the formats used in accounting systems.