Having One Person Responsible for the Related Activities of Ordering

question 75

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 a control activity.
• D)reduces cost and maximizes benefit.

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Definitions:

Specified Date

A particular day designated for a certain event or action to take place.

Sourcing

The process of finding suppliers of goods or services, especially in a manufacturing or business context.

Procurement

The process of obtaining goods or services, typically for business purposes.

Materials Management

The branch of logistics that focuses on physically sourcing, moving, and storing materials, as well as coordinating these operations to ensure the right materials are available at the right time.