The Following Set of Items Describes Activities Completed by a Company

question 102

Multiple Choice

The following set of items describes activities completed by a company in purchasing and paying for merchandise and in collecting cash for merchandise sales. For each activity, identify whether or not the activity adheres to or violates sound internal control procedures. (Choices may be used more than once.)
-Although department supervisors can request a preferred supplier or vendor, the purchasing department has the responsibility for making the final decisions on a vendor.

• A)Adheres to sound internal controls
• B)Violates sound internal controls
• C)Neither strengthens nor violates internal control

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Definitions:

Assemble-to-Order (ATO)

A production strategy where products are assembled only after receiving a customer's order, allowing for customization.

Finished Goods Inventories

Stocks of completed products awaiting sale or shipment, representing one of the critical components of a company's inventory.

Unique Needs

Specific requirements or preferences that differ among individuals or entities, often necessitating customized solutions.