For Effective Internal Control Purposes, the Accounts Payable Department Generally

question 19

Multiple Choice

For effective internal control purposes, the accounts payable department generally should:

• A) ascertain that each requisition is approved as to price, quantity and quality by an authorised employee.
• B) establish the agreement of the vendor's invoice with the receiving report and purchase order.
• C) obliterate the quantity ordered on the receiving department copy of the purchase order.
• D) stamp, perforate or otherwise cancel supporting documentation after payment is mailed.

---

Definitions:

Total Variable Cost

The sum of expenses that vary directly with the level of output, rephrasing it as the aggregate of costs that fluctuates in tandem with production volume.

Short-Run Supply Curve

A graphical representation showing the quantity of goods that producers are willing and able to sell at different prices, over a short period.

AVC Curve

A graph that shows the average variable costs associated with producing different levels of output, typically demonstrating how costs vary with output volume.

MC Curve

A graphical representation in economics that shows how the cost to produce one additional unit of a good (marginal cost) changes as production increases.