An Internal Control Benefit of Centralized Purchasing in an Organization

question 61

Multiple Choice

An internal control benefit of centralized purchasing in an organization includes which of the following?

• A)Separation of authorization from the custody and recording function.
• B)Favorite vendors used multiple times.
• C)Increased compensation of agents through side agreements.
• D)Mathematically accurate vendor invoices.

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Definitions:

Federal Level

Pertaining to the national government of a country, as opposed to state, local, or municipal levels.

Workers' Compensation

Insurance that provides wage replacement and medical benefits to employees injured in the course of employment, in exchange for mandatory relinquishment of the employee's right to sue their employer for negligence.

Independent Contractors

Individuals or entities that perform work for another entity under terms specified in a contract, with a significant degree of independence in the way they operate, not considered employees.

Employees

Individuals who work for another person or an organization in return for financial or other compensation.