Having One Person Responsible for the Related Activities of Ordering

question 13

Multiple Choice

Having one person responsible for the related activities of ordering merchandise receiving goods and paying for them

• A) increases the potential for errors and fraud.
• B) decreases the potential for errors and fraud.
• C) is an example of good internal control.
• D) is a good example of safeguarding the company's assets.

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Definitions:

Costs

Expenses incurred in the process of producing or acquiring goods and services.

Volume

The quantity or amount of something, often used in context with sales volume or production volume.

Variable Cost

Expenses that change in proportion to the activity of a business, such as costs for raw materials, packaging, or labor directly associated with product manufacturing.

Activity Levels

The amount of effort or capacity utilized in the operations of a business, which can influence cost and operational efficiency.