Do Not Indirect Information

A.

Information about the propriety of cutoff is a kind of direct information.

Incorrect Answers: B: Reports that show orders that were rejected for credit limitations provide indirect information that credit checking aspects of the system are working as intended.

C: Reports that provide information about any unusual deviations and individual product margins (whereby, the price of an item sold is compared to its standard cost) provide indirect information that controls over billing and pricing are operating.

D: The lack of any significant differences between perpetual levels and actual levels provides indirect information that its billing controls are operating.

All of the options given in the question can be considered indirect information as they provide information that is not directly related to the primary purpose of the report or system. However, the question asks which of the options do not provide indirect information. Therefore, the correct answer is the option that provides direct information.

Option A: Information about the propriety of cutoff is indirect information because it is not directly related to the primary purpose of the report or system. The report or system may be designed to provide information on inventory levels, sales figures, or other relevant metrics, and the propriety of cutoff is not directly related to these metrics.

Option B: Reports that show orders that were rejected for credit limitations are also indirect information. The report or system may be designed to track sales or inventory, and the information on rejected orders is not directly related to these metrics.

Option C: Reports that provide information about any unusual deviations and individual product margins are also indirect information. The report or system may be designed to track sales or inventory, and the information on deviations and margins is not directly related to these metrics.

Option D: The lack of any significant differences between perpetual levels and actual levels of goods is the only option that provides direct information. This information directly relates to the primary purpose of the report or system, which is to track inventory levels. If the perpetual levels and actual levels of goods are the same, it indicates that the inventory tracking system is accurate and reliable.

In summary, option D does not provide indirect information as it directly relates to the primary purpose of the report or system. The other options, A, B, and C, are all examples of indirect information as they are not directly related to the primary purpose of the report or system.