The Following Information Is Provided for a Company That Manufactures

question 62

Essay

The following information is provided for a company that manufactures bicycles. The factory foreman determines when orders for materials are necessary. The orders are sent to the purchasing department that places orders with the vendors recommended by the factory foreman. When the materials are received, they are immediately delivered to a central storeroom. When invoices are received for the items purchased, they are sent to the accounting department for payment. The accounting department compares the invoices with purchase orders. If the two documents are in agreement, the invoice is approved for payment. The accounting department prepares checks that are signed by the company treasurer.
Recommend three or four improvements in the company's procedures for purchasing and paying for purchases of materials that will provide better internal control.

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Definitions:

Metaphor

A figure of speech in which a word or phrase is applied to an object or action to which it is not literally applicable, suggesting a resemblance.

Predicate

The part of a sentence or proposition that states something about the subject, often describing an action or characteristic.

Proposition

A claim that articulates a viewpoint or judgment.

Sodium

A chemical element with the symbol Na and atomic number 11, a highly reactive metal.